Ravi's report

A
Project Study Report
On
“To Study of Vegetable buying behaviors
Of consumer in Jaipur City”

Submitted in partial fulfillment for the
Award of Degree of
Master of Business Administration

Submitted By: Submitted to:
Ravi Kumar Bunkar Dr. R. P. Rajoria
MBA part 2nd (Campus Director,PCE)

2008-2010
Department of Management Studies
Poornima college of Engineering, ISI-2, RIICO Ind. Area Sitapura,Jaipur-302022 (Raj.)

1

Poornima College of Engineering (DMS)

Certificate

This is to certify that Mr. RAVI KUMAR BUNKAR, a student of Poornima College of

Engineering (DMS) has submitted his report on “To Study of Vegetable buying behaviors
Of consumer in Jaipur City “after successfully completing the project AT jaipur towards
fulfillment of the syllabus requirement prescribed by Rajasthan Technical University, Kota
for MBA Part II .

Dr. R.P. Rajoria
Campus Director, PCE

2

DECLARATION

I RaviKumar Bunkar S/o Mr.Ram Karan Bunkar declare that the project report title

“ToStudy of Vegetable buying behaviors Of consumer in Jaipur City” i after successfully
completing the project at jaipur based on my project study. This project report is my original
work and this has not been used for any purpose anywhere.

RaviKumar Bunkar
PCE DMS
2008-10 Batch

3

Acknowledgement

From the depth of my heart I am very thankful to Mr. R.K. Agarwal (Advisor, PGC) &
Dr. R.P. Rajoria (Campus director, PCE) for giving me an opportunity to work on the
Management Research Project to broaden the knowledge base and understanding the
latest trends and developments in the Vegetable buying behaviors Of consumer.

I express my sincere thanks to my project guide, Ms Nidhi Tak Department of Management
Studies, Poornima college of engineering, Jaipur for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge him for extending their valuable
guidance, support for literature, critical reviews of project and the report and above all the moral
support he had provided to me with all stages of this project.

I would like to thank Rajasthan technical university for giving an opportunity to work on a
valuable project.

I would also like to thank the supporting staff of Poornima college of engineering, for their
help and cooperation throughout our project.

Ravi Kumar Bunkar
MBA 4th Sem.
(PCE) Marketing

4

PREFACE

Since the last few years, the environment of the business world has completely
changed. The modern business placed on a very complex and intricate environment,
the constraints and opportunities provided by the nature of the economy and the
economic system, political and legal framework, social system, geographical and
demographic factors etc. have profound impact on the business. Many
developments have taken place during the post-independence period, which was
due to rapid industrialization. Developments have taken place in the technology
sector, finance sector, information technology sector, medical sector, engineering
sector,

This report is design to introduce about the vegetable buying bekaviour of consumer

In this report I introduce all retail store, local vendors, Indian economy and consumer
behaviour

This report provides the complete description of consumer behaviour. The report is
made in such a way so that the readers may find it easy to develop a clear-sighted
understanding about them.

I anticipate that the suggestions provided would prove to be useful source of
information for the understand and would facilitate growth.

:

5

RESEARCH PROPOSAL
“To Study of Vegetable buying behaviors
Of consumer in Jaipur City”

Agriculture sector is the backbone of any economy Agricultural Sector of Indian
Economy is one of the most significant parts of India. Agriculture is the only means of
living for almost two-thirds of the employed class in India. the current revival in
agriculture sector has been possible mainly due to a number of initiatives taken in the
recent years. Like new retail store for vegetables come into the existence

To know the perception regarding vegetable buying behavior of consumer in jaipur city.
What are impact of new big retail in consumer mind.

To cover all retail store, new vendors of vegetable seller organised and systematic
vegetable shops or retails,

Descriptive research includes survey and fact finding enquiries of different
Kinds. Quantitative research is based on the measurement of quantity or amount of data
to analysis. In research methodology we have used random sampling

Today is the time of competitive era and at this time of cut throat competition every
industry needs to survive.

. For the better understanding of this sector this internship helped a lot to interns.

To know the reasons why the customers are going towards retail and why they are
intresed to buy vegetables from local vendor

Due to the financial & time constraints the study was limited to our place thus the
conclusion arrived in the end rely in short term experience

Time constraints resource constraints were some of the limitations

6

TABLE OF CONTENTS

Chapter
No. Chapter Name page N.

CERTIFICATE 2
DECLARATION 3
ACKNOWLEDGEMNT 4
PREFACE 5
RESEARCH PROPOSAL 6
EXECUTIVE SUMMERY 8
1. INTRODUCTION TO THE INDUSTRY 10

2. INTRODUCTION TO THE ORGANIZATIONS 66

3. RESEARCH METHODOLOGY 99

3.1 Title of the study 100

3.2 Duration of the project 101

3.3 Sample size and method of selecting sample 101

3.4 Type of Research 100

3.5 Objective of study 103

3.6 Limitations of study 104

4. ANALYSIS AND INTERPRETATION 107

5. FACTS AND FINDINGS 105

6. SWOT 120

7. RECOMMENDATIO AND SUGGESTIONS 125

8. CONCLUSION 126

9. APPENDIX 128

10. BIBLIOGRAPHY 133

7

EXECUTIVE SUMMARY

Today is the time of competitive era and at this time of cut throat competition every
industry needs to survive.

Agriculture sector is the backbone of any economy. For the better understanding of
this sector this internship helped a lot to interns.

To know the reasons why the customers are going towards retail and why they are
intresed to buy vegetables from local vendor

For this purpose a research was done in different area of loans. For the research
part the data collection was the objective to know the experiences of the customer’s
perception, behaviour, their preferred. Another task is to make the customers aware
of new plans of retail sector.

The findings were important for the retail to make its strategy. The research told that
still people prefer local vendors rather then organised retaiil store. There is also a
good indication for the local vendors who are afraid of retai storre

I recommended the retail to give emphasis on advertising and launch some
innovative offer to woo the customers. The retail also needs to improve its customer
services and theprice policy.

At last I can say that through this benefited in a great way. They adopted my
recommendations in there marketing strategy; they have come with new advertising
campaign.

8

ABOUT THE INDUSTRY

Introduction:

Agricultural Sector of Indian Economy is one of the most significant parts of India.
Agriculture is the only means of living for almost two-thirds of the employed class in India.
As being stated by the economic data of financial year 2006-07, agriculture has acquired 18
percent of India's GDP.

The agricultural sector of India has occupied almost 43 percent of India's geographical
area. Agriculture is still the only largest contributor to India's GDP even after a decline in the
same in the agricultural share of India. Agriculture also plays a significant role in the growth
of socio-economic sector in India.

In the earlier times, India was largely dependent upon food imports but the successive story
of the agricultural sector of Indian economy has made it self-sufficing in grain production.
The country also has substantial reserves for the same. India depends heavily on the
agricultural sector, especially on the food production unit after the 1960 crisis in food sector.
Since then, India has put a lot of effort to be self-sufficient in the food production and this
endeavor of India has led to the Green Revolution. The Green Revolution came into
existence with the aim to improve the agriculture in India.

Agriculture is one of the strongholds of the Indian economy and it accounts for 18.5 per
cent of the gross domestic product (GDP). Agriculture draws its significance from the vital
supply and demand links with the manufacturing sector and is a source of livelihood for the
rural population of India.

The year 2007–08 was a year of record food grain production and procurement. Food grain
production increased to an all-time record level of 230.67 million tones during 2007–08. The
production of the kharif crop suffered due to erratic rains and floods, the present Rabi
production is likely to be better and thus the overall food grain production in 2008–09 is
likely to be even higher. Similarly, oilseeds, milk, fruits and vegetables, and fish production
has been growing over the past few years to reach new levels.

10

The average growth rate of agriculture and allied sectors during the last two years i.e.,
2006–07 and 2007–08 has been more than 4 per cent as compared to the average annual
growth of 2.5 per cent during the 10th Five-Year Plan.

The current revival in agriculture sector has been possible mainly due to a number of
initiatives taken in the recent years. While public sector investment in the farm sector has
grown from 1.8 per cent of sectoral gross domestic product (GDP) in 2000–01 to 3.5 per
cent in 2006–07, private sector investment has increased from 8.9 per cent in 2003–04 to
9.9 per cent in 2006–07.

The services enhanced by the Green Revolution in the agricultural sector of Indian
economy are as follows:

• Acquiring more area for cultivation purposes
• Expanding irrigation facilities
• Use of improved and advanced high-yielding variety of seeds
• Implementing better techniques that emerged from agricultural research
• Water management
• Plan protection activities through prudent use of fertilizers, pesticides, and cropping
applications

All these measures taken by the Green Revolution led to an alarming rise in the wheat and
rice production of India's agriculture. Considering the quantum leap witnessed by the wheat
and rice production unit of India's agriculture, a National Pulse Development Programmed
that covered almost 13 states was set up in 1986 with the aim to introduce the improved
technologies to the farmers. A Technology Mission was introduced in 1986 right after the
success of National Pulse Development Programmed to boost the oilseeds sector in Indian
economy. Pulses too came under this programmed. A new seed policy was planned to
provide entree to superior quality seeds and plant material for fruits, vegetables, oilseeds,
pulses, and flowers.

The Indian government also set up Ministry of Food Processing Industries to stimulate the
agricultural sector of Indian economy and make it more lucrative. India's agricultural sector
highly depends upon the monsoon season as heavy rainfall during the time leads to a rich

11

harvest. But the entire year's agriculture cannot possibly depend upon only one season.
Taking into account this fact, a second Green Revolution is likely to be formed to overcome
the restrictions. An increase in the growth rate and irrigation area, improved water
management, improving the soil quality, and diversifying into high value outputs, fruits,
vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the
services to be taken by the Green Revolution to improve the agriculture in India.

India with its current production of around 32 million MT of fruit, accounts for about 8% of
the world’s fruit production. The diverse agro-climatic zones the countries make it possible
to grow almost all varieties of fresh fruits and vegetables in India. The fruit production in
India has recorded a growth rate of 3.9%, whereas the fruit processing sector has grown at
about 20% per annum. However, the growth rates have been extensively higher for frozen
fruits & vegetables (121%) and dehydrated fruits & vegetables (24%). There exist over
4000 fruit processing units in India with an aggregate capacity of more than 12 lakh MT
(less than 4% of total fruits produced). It is estimated that around 20% of the production of
processed fruits is meant for exports, the rest caters to the defense, institutional sectors
and household consumption, Mango and mango-based products constitute 50% of exports.

Rajasthan has the eighth largest economy with a Net State Domestic Product (NSDP) of
over US$ 11.5 billion. Over the last ten years from 1994 to 2003, the state of Rajasthan
underwent growth at a Compounded Average Growth Rate (CAGR) of 6% increasing from
US$ 6.4 billion to US$ 11.5 billion.

In the years 1995-96 and 2001-02, the industrial sector of the state underwent a growth rate
of 6.9% per annum. The growth rate of the service sector was 7.4 %.

The main economy of Rajasthan is agrarian based. Agriculture is the leading economy of
the state accounting for 22.5 per cent. The total cultivated area of the state encompasses
about 20 million hectares and out of this only 20% of the land is irrigated.

The principal crops Barley, Wheat, Gram, Pulses, Oil Seeds, Bajra, Pulses, Jowar, Maize
Ground Nuts, fruits and vegetables and spices.

12

Cuisine of India

The cuisine of India is characterized by its use of locally available resources, including
spices and vegetables grown across India and in some parts of India for the widespread
practice of vegetarianism across its society. Each Asian of Indian cuisine is characterised
by a wide assortment of dishes and cooking techniques. As a consequence, it varies from
region to region, reflecting the varied demographics of the ethnically diverse Indian
subcontinent.

India's religious beliefs and culture have played an influential role in the evolution of its
cuisine.]However, India's cuisine also evolved with the subcontinent's cross-cultural
interactions with the neighboring Middle East and Central Asia as well as the
Mediterranean, making it a unique blend of various cuisines from across Asia. The spice
trade between India and Europe is often cited as the main catalyst for the Age of Discovery.
The colonial period introduced European cooking styles to India adding to the flexibility and
diversity of Indian cuisine. Indian cuisine has had a remarkable influence on cuisines across
the world, especially those from Southeast Asia. In particular, curry, which originated in
India, is used to flavor food across Asia.

History and influences:

As a land that has experienced extensive immigration and intermingling through many
millennia, India's cuisine has benefited from numerous food influences. The diverse climate
in the region, ranging from deep tropical to alpine, has also helped considerably broaden
the set of ingredients readily available to the many schools of cookery in India. In many
cases, food has become a marker of religious and social identity, with varying taboos and
preferences (for instance, a segment of the Jain population will not consume any roots or
subterranean vegetables; see Jain vegetarianism). One strong influence over Indian foods
is the longstanding vegetarianism within sections of India's Hindu, Buddhist and Jain
communities. People who follow a strict vegetarian diet make up 20–42% of the population
in India, while less than 30% are regular meat-eaters

13

Around 7000 BC, sesame, eggplant, and humped cattle had been domesticated in the
Indus Valley.[By 3000 BC, turmeric, cardamom, black pepper and mustard were harvested
in India. Many recipes first emerged during the initial Vedic period, when India was still
heavily forested and agriculture was complemented with game hunting and forest produce.
In Vedic times, a normal diet consisted of fruit, vegetables, meat, grain, dairy products and
honey. Over time, some segments of the population embraced vegetarianism, due to
ancient Hindu philosophy of ahimsa. This practice gained more popularity following the
advent of Buddhism and a cooperative climate where variety of fruits, vegetables, and
grains could easily be grown throughout the year. A food classification system that
categorised any item as saatvic, raajsic or taamsic developed in Ayurveda. Each was
deemed to have a powerful effect on the body and the mind

Later, invasions from Central Asia, Arabia, the Mughal empire, and Persia, and others had
a deep and fundamental effect on Indian cooking. Influence from traders such as the Arab
and Portuguese diversified subcontinental tastes and meals. As with other cuisines, Indian
cuisine has absorbed the new-world vegetables such as tomato, chilli, and potato, as
staples. These are actually relatively recent additions.

Islamic rule introduced rich gravies, pilafs and non-vegetarian fare such as kebabs,
resulting in Mughlai cuisine (Mughal in origin), as well as such fruits as apricots, melons,
peaches, and plums. The Mughals were great patrons of cooking. Lavish dishes were
prepared during the reigns of Jahangir and Shah Jahan. The Nizams of Hyderabad state
meanwhile developed and perfected their own style of cooking with the most notable dish
being the Biryani.

During this period the Portuguese and British introduced foods from the New World such as
potatoes, tomatoes, squash, and chilies as well as cooking techniques like baking.

The staples of Indian cuisine are rice, atta (whole wheat flour), and a variety of pulses, the
most important of which are masoor (most often red lentil), chana (bengal gram), toor
(pigeon pea or yellow gram), urad (black gram) and mung (green gram). Pulses may be
used whole, dehusked, for example dhuli moong or dhuli urad, or split. Pulses are used
extensively in the form of dal (split). Some of the pulses like chana and "Mung" are also
processed into flour (besan).

14

Most Indian curries are cooked in vegetable oil. In North and West India, groundnut oil has
traditionally been most popular for cooking, while in Eastern India, Mustard oil is more
commonly used. In South India, coconut oil and Gingelly Oil is common. In recent decades,
sunflower oil and soybean oil have gained popularity all over India. Hydrogenated vegetable
oil, known as Vanaspati ghee, is also a popular cooking medium that replaces Desi ghee,
clarified butter (the milk solids have been removed).

The most important/frequently used spices in Indian cuisine are chilli pepper, black mustard
seed (rai), cumin (jeera), turmeric (haldi, manjal), fenugreek (methi), asafoetida (hing,
perungayam), ginger (adrak, inji), coriander, and garlic (lassan, poondu). Popular spice
mixes are garam masala which is usually a powder of five or more dried spices, commonly
including cardamom, cinnamon, and clove. Each region, and sometimes each individual
chef, has a distinctive blend of Garam Masala. Goda Masala is a popular spice mix in
Maharashtra. Some leaves are commonly used like tejpat (cassia leaf), coriander leaf,
fenugreek leaf and mint leaf. The common use of curry leaves is typical of all South Indian
cuisine. In sweet dishes, cardamom, nutmeg, saffron, and rose petal essence are used.

The term "curry" is usually understood to mean "gravy" in India, rather than "spices." The
term Desi Diet indicates a Diet followed by Indians

Geographical varieties:

Northern:

North Indian cuisine is distinguished by the proportionally high use of dairy products; milk,
paneer, ghee (clarified butter), and yoghurt (yogurt, yoghourt) are all common ingredients.
Gravies are typically dairy-based. Other common ingredients include chilies, saffron, and
nuts.

North Indian cooking features the use of the "tawa" (griddle) for baking flat breads like roti
and paratha, and "tandoor" (a large and cylindrical charcoal-fired oven) for baking breads
such as naan, and kulcha; main courses like tandoori chicken also cook in the tandoor.
Other breads like puri and bhatoora, which are deep fried in oil, are also common. Goat and
lamb meats are favored ingredients of many northern Indian recipes.

15

The samosa is a popular North Indian snack, and now commonly found in other parts of
India, Central Asia, North America, and the Middle East. A common variety is filled with
boiled, fried, or mashed potato. Other fillings include minced meat, cheese (paneer),
mushroom (khumbi), and chick pea.

The staple food of most of North India is a variety of lentils, vegetables, and roti (wheat
based bread). The varieties used and the method of preparation can vary from place to
place. Popular snacks, side-dishes and drinks include mirchi bada, buknu, bhujiya, chaat,
kachori, imarti, several types of pickles (known as achar), murabba, sharbat, aam panna
and aam papad. Popular sweets are known as mithai (means sweetmeat in Hindi), such as
gulab jamun, jalebi, peda, petha, rewadi, gajak, bal mithai, singori, kulfi, falooda, khaja, ras
malai, gulkand, and several varieties of laddu, barfi and halwa.

Some common North Indian foods such as the various kebabs and most of the meat dishes
originated with Muslims’ incursions into the country. Considering their shared historic and
cultural heritage, Pakistani cuisine and North Indian cuisine are very similar. However,
Brazilian cuisine through the Portuguese influence has become very popular in certain parts
of Punjab.

Eastern:

East Indian cuisine is famous for its desserts, especially sweets such as rasagolla,
chumchum, sandesh, rasabali, chhena poda, chhena gaja, chhena jalebi and kheeri. Many
of the sweet dishes now popular in Northern India initially originated in the Bengal and
Orissa regions. Apart from sweets, East India cuisine offers delights of posta (poppy
seeds).

Traditional cuisines of Orissa, Bengal, and Assam are delicately spiced. General
ingredients used in Oriya, Bengali, and Assamese curries are mustard seeds, cumin seeds,
nigella, green chillies, cumin paste and the spice mix panch phoron or panch phutana.
Mustard paste, curd, nuts, poppy seed paste and cashew paste are preferably cooked in
mustard oil. Curries are classified into bata (paste), bhaja (fries), chochchoree (less spicy
vapourized curries) and jhol (thin spicy curries).These are eaten with plain boiled rice or
ghonto (spiced rice). A traditional breakfast includes pantabhat or pakhaal, as well as
cereals such as puffed rice or pressed rice, in milk, often with fruits. The cuisine of

16

Bangladesh is very similar to eastern Indian cuisine, particularly that of West Bengal. Fish
and shellfish are commonly consumed in the eastern part of India. The popular vegetable
dishes of Orissa are Dalma and Santula. The most popular vegetable dish of Bengal is
Sukto. Deep fried, shallow fried and mashed vegetables are also very popular. As in
southern India, rice is the staple grain in Eastern India too. A regular meal consists of
lentils, a primary non vegetarian side dish usually made of fish and a few other secondary
side dishes made of vegetables.

Southern:

South Indian cuisine is distinguished by a greater emphasis on rice as the staple grain, the
ubiquity of sambar and rasam (also called saaru and rasa), a variety of pickles, and the
liberal use of coconut and particularly coconut oil and curry leaves. Curries called
Kozhambu are also popular and are typically vegetable stews cooked with spices, tamarind
and other ingredients. The dosa, poori, idli, vada, bonda and bajji are typical South Indian
favorites. These are generally consumed as part of breakfast. Other popular dishes include
Kesaribath, Upma, Pulao, Puliyodharai and Thengai Sadham. Hyderabadi biryani, a
popular type of biryani, reflects the diversity of south Indian cuisine. South Indian cuisine
obtains its distinct flavours by the use of tamarind, coconuts, lentils, rice and a variety of
vegetables.Udupi cuisine is one of the popular cuisines of South India.

Andhra, Chettinad, Tamil, Hyderabadi, Mangalorean, and Kerala cuisines each have
distinct tastes and methods of cooking. In fact each of the South Indian states has a
different way of preparing sambar; a connoisseur of South Indian food will very easily tell
the difference between sambar from Kerala, sambar from Tamil cuisine, Sambar from
Karnataka and pappu chaaru in Andhra cuisine.Some popular dishes include the Biriyani,
Ghee Rice with meat curry, seafood (prawns, mussels, mackerel) and paper thin Pathiris
from Malabar area.

Western:

Western India has three major food groups: Gujarati, Maharashtrian and Goan.
Maharashtrian cuisine has mainly two sections defined by the geographical sections. The
coastal regions, geographically similar to Goa depend more on rice, coconut, and fish. The
hilly regions of the Western Ghats and Deccan plateau regions use groundnut in place of

17

coconut and depend more on jowar (sorghum) and bajra (millet) as staples. Saraswat
cuisine forms an important part of coastal Konkani Indian cuisine. Gujarati cuisine is
predominantly vegetarian. Many Gujarati dishes have a hint of sweetness due to use of
sugar or brown sugar. Goan cuisine is influenced by the Portuguese colonization of Goa.

North Eastern:

The food of the North East is very different from other parts of India. This area's cuisine is
more influenced by its neighbours, namely Burma and the People's Republic of China. For
example it uses less of the well known spices that are popular in other parts of India. Yak is
a popular meat in this region of India.

Popularity and influence outside India

Indian cuisine is one of the most popular cuisines across the globeThe cuisine is popular
not only among the large Indian diaspora but also among the mainstream population of
North America and Europe. In 2003, there were as many as 10,000 restaurants serving
Indian cuisine in England alone. A survey held in 2007 revealed that more than 1,200
Indian food products have been introduced in the United States since 2000. According to
Britain's Food Standards Agency, the Indian food industry in the United Kingdom is worth
£3.2 billion, accounts for two-thirds of all eating out and serves about 2.5 million British
customers every week.

Apart from Europe and North America, Indian cuisine is popular in South East Asia too
because of its strong historical influence on the region's local cuisines. Indian cuisine has
had considerable influence on Malaysian cooking stylesand also enjoys strong popularity in
Singapore. Indian influence on Malay cuisine dates back to 19-century. Other cuisines
which borrow Indian cooking styles include Vietnamese cuisine, Indonesian cuisine and
Thai cuisine. The spread of vegetarianism in other parts of Asia is often credited to ancient
Indian Buddhist practices. Indian cuisine is also fairly popular in the Arab world because of
its similarity and influence on Arab cuisine.

The popularity of curry, which originated in India, across Asia has often led to the dish being
labeled as the "pan-Asian" dish. Curry's international appeal has also been compared to
18

that of pizza. Though the tandoor did not originate in India, Indian tandoori dishes, such as
chicken tikka made with Indian ingredients, enjoy widespread popularity. Historically, Indian
spices and herbs were one of the most sought after trade commodities. The spice trade
between India and Europe led to the rise and dominance of Arab traders to such an extent
that European explorers, such as Vasco da Gama and Christopher Columbus, set out to
find new trade routes with India leading to the Age of Discovery.

Beverages:

Tea is a staple beverage throughout India; the finest varieties are grown in Darjeeling and
Assam. It is generally prepared as masala chai, wherein the tea leaves are boiled in a mix
of water, spices such as cardamom, cloves, cinnamon, and ginger, and large quantities of
milk to create a thick, sweet, milky concoction. Different varieties and flavors of tea are
prepared to suit different tastes all over the country. Another popular beverage, coffee, is
largely served in South India. One of the finest varieties of Coffea arabica is grown around
Mysore, Karnataka, and is marketed under the trade name "Mysore Nuggets". Indian filter
coffee, or kaapi, is also especially popular in South India. Other beverages include nimbu
pani (lemonade), lassi, chaach, badam doodh (almond milk with nuts and cardamom),
sharbat and coconut water. India also has many indigenous alcoholic beverages, including
palm wine, fenny and Indian beer. There's also bhang, prepared using cannabis, and
typically consumed, especially in North India, during Holi and Vaisakhi. However the
practice of drinking a specific beverage with a meal, or wine and food matching, is not
traditional or common in India.

Although the above listed beverages are popular, people prefer to consume drinking water
with their food because drinking water does not overshadow the taste of the food. In fact it
is customary to offer drinking water to guests before serving any hot or cold drinks.

Fruits and Vegetables:

The fruit and vegetable processing industry in India is highly decentralized having wide
capacities. The diverse agro- climatic zones make it possible to grow almost all varieties of
fresh fruits and green vegetables in India. India is the second largest producer of fresh
vegetables in the world (ranks next to China) and accounts for about 15% of the world’s
production of vegetables.

19

Production area:

Vegetables are typically grown in India in field conditions; the concept is opposed to the
cultivation of vegetables in green houses as practiced in developed countries for high
yields. The fruits and vegetables considered important by the horticulture board of India are
mostly grown in the areas of Jammu & Kashmir, Himachal Pradesh, hilly regions of North
Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka, Gujarat, Andhra Pradesh, Assam,
Madhya Pradesh, Rajasthan, Punjab, Tripura, West Bengal and Orissa.

Growth promotional activities:

Since liberalization and withdrawal of excise duty on fruit and vegetable products there has
been significant rise in the growth rate of the industry Out of 370 million tons of fruit
production in the world, India accounts for 30 million tons. No industrial license is required
for setting up F & V P industries; setting-up 100% EOUs require specific Govt. approvals.
Many subsidies, irrigation plans, loans, pre and post harvesting schemes led to the
following figures of production.

Fruit & vegetable Total production M. T India's production
status

Mango 10 million tons World's largest producer

Banana 7 million tons World's largest producer

Pineapple 12.6% of world production World's 4th largest
producer

Oranges 6.3% of world production World's 5th largest
producer

20

Grapes - World record in
productivity

Onion - World's 2nd largest
producer

Cauliflower World's 3rd largest
producer

Vegetables:

More than 40 kinds of vegetables belonging to different groups, namely, solanaceous,
cucurbitaceous, leguminous, cruciferous (cole crops), root crops and leafy vegetables are
grown in India in tropical, sub-tropical and temperate regions. Important vegetable crops
grown in the country are tomato, onion, brinjal, cabbage, cauliflower, okra and peas.

India is next only to China in area and production of vegetables and occupies prime position
in the production of cauliflower, second in onion and third in cabbage in the world. The area
and production of major vegetables during 2004-05 is estimated at 6.30 million ha with a
production of 93.0 million tonnes and average productivity of 14.8 tonnes per ha. The
production has increased by 5.7 per cent.

India is the fruit and vegetable basket of the world. India being a home of wide variety of
fruits and vegetables holds a unique position in production figures among other countries.
Over 90% of India’s exports in fresh products go to west Asia and East European markets.
However, it needs to augment its food and processing industry at a mega scale, according
to an agriculture consultant.

India’s exports of Fresh Fruit and Vegetable have increased Rs. 2437.12 Crores in
2007-08. Which is including the products like Fresh Onion, Walnut, Fresh Mangos, Fresh
Grapes and other fresh Fruits & Vegetables?

Abundant investment opportunities are there in expanding the export market. An increasing

21

acceptance of new products with market development efforts has been witnessed lately
given the fact that there is a good international demand for certain fruits and vegetable
products. India ranks fifth in the world in cropped area under cultivation and production of
potatoes. India produces 41% of world’s mangoes, 23%bananas, 24% cashew nuts, 36 %
green peas and 10% onion the total export value of the main exporting fruit crop from India
is mango. Exports of mangoes, grapes, mushrooms have started going to the United
Kingdom, Middle East, Singapore and Hong Kong. And among vegetable, onion occupies
first position Potatoes and green vegetables like okra, bitter gourd, green chilies have good
export potential.

Several customs are associated with the manner of food consumption. Traditionally, meals
are eaten while seated either on the floor or on very low stools or cushions. Food is most
often eaten without cutlery, using instead the fingers of the right hand. However, these
traditional ways of dining are being influenced by eating styles from other parts of the world.
Eating with your hands is considered important in Indian etiquette because a person eating
with his hands knows the exact temperature of food before the morsel hits his mouth thus
preventing blisters in mouth due to consumption of hot food.

Traditional serving styles vary from region to region in India. A universal aspect of
presentation is the thali, a large plate with samplings of different regional dishes
accompanied by raita, breads such as naan, puri, or roti, and rice. In South India, a cleaned
banana leaf is often used as a hygienic, visually interesting and environmentally friendly,
alternative to plates.

In Southern India there is a beverage served cold known as Panner Soda or Gholi Soda
which is a mixture of carbonated water, rose water, and sugar. Another southern beverage
is rose milk, which is served cold.

Agriculture has remained the mainstay of the Indian economy, with vegetables like potato
acquiring a special place in the sector. To further enable the importance of potato business,
the Indian Council of Agricultural Research (ICAR), Central Potato Research Institute
(CPRI), Indian Potato Association (IPA) and the Centre for Agriculture & Rural
Development (CARD) are jointly presenting Agrotech 2008. The exhibition will be held from
9th-12th December, 2008 at the NASC Complex, Pusa Road, New Delhi, India, and will

22

uncover an entire gamut of products, technology and machines used in the production of
potato products. Along with the exhibition, a global conference on the prospects and
benefits of potato will also be held at the venue. High profile scientists and entrepreneurs
will be attending the conference to share and exchange their ideas and opinions in the
Global Potato Conference 2008. The last edition of the exhibition was a great success and
saw the presence of eminent scientists, agriculturists, industrial experts, among others.
With even a wider presence expected in this edition, we are hopeful of creating success
once again.

India the land of the greenery is one of the major vegetable suppliers in the world giving a
great hand to the Indian exporting system. Vegetable exporting is one of the most important
crops for the developing country like India. Indian vegetables suppliers & Indian vegetables
exporters are concentrating mainly in vegetable such as onion, carrot, French beans,
potato, lemon, tapioca, tomato, etc. They have gained the reputation for supplying good
quality and hygienic vegetables to valued customers, with committed and qualified work
force to meet the regular challenges and timely deliveries.

Most of the people from the entire world depend upon the Indian market for good quality
stuff so the Indian vegetables suppliers & Indian vegetables exporters take good care about
the quality of the vegetables. In Indian market we can see a large variety of vegetables that
are tasty and also have high nutritious value. Hence the vegetable products are leading
Indian economy a lot. Indian vegetables suppliers & Indian vegetables exporters are giving
more attention to the high quality stuff and good packing of vegetables.

Indian vegetables suppliers, Indian vegetables exporters:

Health is a matter of concern for everyone. The key to good health is adequate
consumption of nutritious fruits and vegetables. To promote this healthy living, Indian
vegetables suppliers & Indian vegetables exporters supply premium quality fruits and
vegetables. Fresh & nutritional fruits and vegetables provide significant protection against
cancer, heart diseases and other nutritional ailments and are recommended for every age
group.

23

Customer’s health is the top most priority of vegetable suppliers. Thus, Indian vegetables
suppliers & Indian vegetables exporters work with complete sincerity and loyalty to supply
the best quality fruits and vegetables. To promote easy accessibility, Indian vegetables
suppliers & Indian vegetables exporters’ market products at most nominal prices making
them highly demanded distributors.

Superior quality vegetables and fruits are handpicked from the farms and are further kept
under optimum storage conditions. Indian vegetables suppliers & Indian vegetables
exporters take extreme care in sorting out fruits and vegetables, continually eliminating the
rotting ones; ensuring that only the best fruits and vegetables reach you from the vegetable
suppliers.

Besides being colorful and nutritious, Indian vegetables contain antioxidants that get rid of
toxins in the body. Indian vegetables suppliers & Indian vegetables exporters supply high
yielding varieties of vegetables and have adequate packaging facility that helps in retaining
purity, freshness and avoid infestation and decay. The Indian vegetables suppliers & Indian
vegetables exporters have an extensive distribution network across the globe that ensures
timely delivery at competitive prices.

Indiabizone takes pride in serving esteemed clients who have trusted us over the years for
our quality listings and sound business practices. Hence we invite you to the unique section
wherein details of Indian vegetables suppliers & Indian vegetables exporters are well
arranged for you to access. So contact your vendor today and be a part of the healthy
eating regime.

Cost of living, already at a 13-year peak, is rising again. Annual inflation, based on
wholesale price index (WPI), climbed further to 11.89% in the week ended June 28,
outpacing the previous week’s 11.63% and 4.42% during the corresponding week of the
previous year.

The government also sharply revised the inflation figure for the week ended May 3 by 0.9%
to 8.73% as compared to the provisional data of 7.83%. This suggests that inflation may be
currently close to 13%, forcing RBI to further tighten monetary policy at its review later this
month, economists said.

24

The latest spurt in inflation is fanned by costlier food items and manufactured items as the
second-round effect of price increase in auto fuel percolated into the economy. Food items
like fruits and vegetables, cooking oil, textiles, fertilizers, pesticides and telephone
instruments became costlier during the week. Food products rose 0.3 per cent and primary
articles were up 0.9 per cent. Likewise, vegetables were up 3.7% and chemicals and
products rose 1.2 per cent. However, iron and steel fell 1.4 per cent and fuel remained
unchanged.

The finance ministry stated that prices of 30 essential commodities, which include food
grains, pulses, edible oils, vegetables, dairy products and some other commodities
including kerosene, soap and safety matches have more or less stabilized. In the primary
articles group, out of a total of 98 articles, 12 articles have shown a decline in prices as
compared to June 21. These include wheat, rice, maize, garlic, cabbage, cumin, black
pepper, ginger and Niger seed.

Prices of another 55 articles remained steady. Among manufactured products, out of a total
320 commodities, 278 have shown no increase in prices over the previous week. In case of
16 commodities, there is a decline in prices. These include penicillin, imported edible oil, pig
iron, steel products, and cotton seed oil and de-oiled, the finance ministry stated.

According to government data, fruits and vegetables became costlier by 2%, non-food
articles in the range of 2% to 7%, coconut oil by 11%, rape and mustard oil by 5% and
soybean oil by 5%. Cotton yarn hanks became costlier by 9%, polyester staple fiber by 8%,
cotton knitted garments by 3%, cement by 1% and telephone instruments by 19%. Prices of
iron products eased in the range of 2% to 8%.

It is estimated that steel and steel products (used in industries like auto, housing, white
goods, capital goods etc) contribute almost 21 per cent to inflation. Cement prices are
expected to remain soft, thanks to capacity addition.

Said Crisis principal economist DK Joshi: ‘Although the pace of inflation was slower in the
week under scrutiny, even a marginal increase at the current level would be highly
uncomfortable and unwelcome. Looking at the magnitude of revision in the provisional WPI
figures, one gets the impression that inflation may be ruling at close to 13% now. To lower
25

consumption, the RBI may further tighten monetary policy; particularly raise the share of
cash that banks have to park with it by about 50 bps later this month.

Last month, RBI had raised its benchmark interest rate twice to a six-year high of 8.5% and
lifted its cash reserve ratio to 8.75% to prevent money supply in the banking system from
fueling inflation.

Last Tuesday, Finance Minister P. Chidambaram said the government was relying on
monetary policy to cool demand and calm prices. Last month, the RBI had raised its main
lending rate by 75 basis points and increased banks' reserve requirement by 50 basis
points to contain inflation expectations. Its next scheduled review is on July 29, but it can
act before then. Market is expecting further tightening of monetary policy. If at all the RBI
touches the rate at which it makes short-term lending to banks, it may be an increase of 25
bps.

According to Ms Sonal Varma, India economist, Lehman Brothers, the RBI is likely to hike
repo rates by 25 basis points in the monetary policy, while a hike of 50 basis points in the
CRR could happen anytime in the July-September quarter. The key challenge before the
RBI now is to try and prevent the second round effects of inflation, such as producers
passing on higher input cost to consumers and workers demanding increase in wages due
to higher cost of living. ‘The RBI has already hiked interest rates to moderate credit growth
and we expect them to maintain their tightening bias. The rate hikes should help slow down
credit growth,’

India gains a foothold in the international fruit and vegetable
market:

With an annual output of 127 million tones of fruit and vegetables, India lies second in the
world producing country rankings, after China. Since the end of the 1990s, it has been
eyeing up the export markets, in the hope of gaining in international visibility and repute.
However, yields are still low, and most of what is produced is either consumed in India or
lost as a result of poor post harvest management. Moreover, barely 2% of the fruit and

26

vegetable crop is processed, and India accounts for just 1.2% of international trade in these
products.

In April, CIRAD’s Fruit and Horticultural Crops Department (FLHOR) received a new remit
from APEDA (Agricultural and processed food Products Export Development Authority), a
branch of the Indian Ministry of Trade. Its task is to optimize cropping with a view to
exporting tropical (okra or lady’s finger, bitter melon and pointed gourd) and European
vegetables (mange tout peas, French beans, mini-sweet corn, sweet corn, etc).

CIRAD’s researchers are basing their work on a similar project conducted with APEDA for
lynches between 1998 and 2003. The aim was to set up an export chain to Europe. This
initial project was a huge success: in 2003, 350 tonnes of lychees were exported, compared
to 5 tonnes in 1998. Moreover, given the difference in hemisphere, they were exported in
the off-season in relation to supplies from Madagascar and Reunion. More recently, CIRAD
also worked to establish a pineapple export chain to Dubai, in the United Arab Emirates.
The first containers were shipped in December 2005.

CIRAD is required to use field observations and produce technical advice notes to advise
farmers and enable them to ensure that their products satisfy the standards imposed by
importing countries. For instance, this concerns the phytosanitary products used, types of
packaging, public health criteria and also child labor. "Diseases, inappropriate fertilizer
rates, nutrient (iron, nitrogen, etc) deficiencies or surpluses, transport and traceability; we
assess and correct all kinds of problems", explains Christian Didier, project leader at
CIRAD-FLHOR. "Thanks to the progress made on export crops, quality standards for all
fruit and vegetables crops will also progress", he adds. Development staff has been trained
to follow up farmers in the field, throughout the year. CIRAD is also involved in setting up
research stations, as was the case with lychees in Bihar State, which accounts for 75% of
national output.

Asia’s largest vegetable market near Jaipur soon:

Jaipur, Aug 21: Asia’s largest ever fruit and vegetable mandi (yard) is coming up at Muhana
village, around 25 km from here. The mandi, which is to occupy 150 hectare, is likely to cost
Rs 100 crore. Infrastructure development has already started around the mandi.

27

The Rajasthan government has also allocated a budget of Rs 55 crore for the development
of the mega-yard, slated to become operational by 2006.

“The mandi will have facilities like bank branches, post offices, insurance agents and a
hospital,” Kesar Singh, the mandi’s secretary, said.

As planned, the complex will house 2,000 shops, establishments and cold storages.

Mr Singh said the mandi will have commodious and eco-friendly waste disposal facilities.

28

“This mandi will surely change our lifestyle. It will help us sell our produce as well as throw
open a gamut of other opportunities,” said Ramlal Gujar, a local farmer.

“It’s a dual benefit for us since it assures different employment avenues for our children,”
said Chand Ram, another farmer.

At the same time, local household buyers like SK Sharma bemoan the increased distance
to the mandi and complain that daily trips will have to be curtailed in favor of weekend visits.

Consumer behavior:

As a consumer we are all unique and this uniqueness is reflected in the consumption
pattern and process purchase. The study of consumer behavior provides us with reasons
why consumers differ from one another in buying using products and services. We receive
stimuli from the environment and the specifics of the marketing strategies of different
products and services, and responds to these stimuli in terms of either buying or not buying
product. In between the stage of receiving the stimuli and responding to it, the consumer
goes through the process of making his decision.

An important part of the marketing process is to understand why a customer or buyer
makes a purchase.

Without such an understanding, businesses find it hard to respond to the customer’s needs
and wants.

Marketing theory traditionally splits analysis of buyer or customer behaviour into two broad
groups for analysis – Consumer Buyers and Industrial Buyers

Consumer buyers are those who purchase items for their personal consumption

Industrial buyers are those who purchase items on behalf of their business or organization

For a marketing manager, the challenge is to understand how customers might respond to
the different elements of the marketing mix that are presented to them.

29

If management can understand these customer responses better than the competition, then
it is a potentially significant source of competitive advantage.

Consumer behavior is the study of when, why, how, where and what people do or do not
buy products It blends elements from psychology, sociology, social, anthropology and
economics. It attempts to understand the buyer decision making process, both individually
and in groups. It studies characteristics of individual consumers such as demographics and
behavioral variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups, and
society in general

.Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-discovery
of the true meaning of marketing through the re-affirmation of the importance of the
customer or buyer. A greater importance is also placed on consumer retention, customer
relationship management, personalization, customisation and one-to-one marketing. Social
functions can be categorized into social choice and welfare functions.

Each method for vote counting is assumed as a social function but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness, neutrality, anonymity, monotonocity,
unanimity, homogeneity and weak and strong Paretooptimality. No social choice function
meets these requirements in an ordinal scale simultaneously. The most important
characteristic of a social function is identification of the interactive effect of alternatives and
creating a logical relation with the ranks. Marketing provides services in order to satisfy
customers. With that in mind, the productive system is considered from its beginning at the
production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).

Belch and Belch define consumer behavior as 'the process and activities people engage in
when searching for, selecting, purchasing, using, evaluating, and disposing of products and
services so as to satisfy their needs and desires'.
30

Black box model:

ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S
Marketing Environmental Buyer Decision
RESPONSE
Stimuli Stimuli Characteristics Process
Problem
recognition
Information
Attitudes Product choice
Product Economic search
Motivation Brand choice
Price Technical Alternative
Perceptions Dealer choice
Place Political evaluation
Personality Purchase timing
Promotion Cultural Purchase
Lifestyle Purchase amount
decision
Post-purchase
behavior

The black box model shows the interaction of stimuli, consumer characteristics, decision
process and consumer responses.[1] It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people). The black box model is related to
the black box theory of behaviorism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response of the consumer. The
marketing stimuli are planned and processed by the companies, whereas the environmental
stimuli are given by social factors, based on the economical, political and cultural
circumstances of a society. The buyer’s black box contains the buyer characteristics and
the decision process, which determines the buyer’s response.

The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem.
However, in reality many decisions are not made in awareness of a determined problem by
the consumer.

31

Information search:

Once the consumer has recognised a problem, they search for information on products and
services that can solve that problem. Belch and Belch (2007) explain that consumers
undertake both an internal (memory) and an external search.

Sources of information include:

• Personal sources
• Commercial sources
• Public sources
• Personal experience

The relevant internal psychological process that is associated with information search is
perception. Perception is defined as 'the process by which an individual receives, selects,
organises, and interprets information to create a meaningful picture of the world'

The selective perception process:

Stage Description:

- Selective exposure consumers select which promotional messages they will expose
themselves to.
- Selective attention consumers select which promotional messages they will pay attention
to
- Selective comprehension consumer interpret messages in line with their beliefs, attitudes,
motives and experiences
- Selective retention consumers remember messages that are more meaningful or
important to them

The implications of this process help develop an effective promotional strategy, and select
which sources of information are more effective for the brand.

32

Steps of buyer’s behaviour

33

Information evaluation:

At this time the consumer compares the brands and products that are in their evoked set.
How can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the
functional and psychological benefits that they offer. The marketing organization needs to
understand what benefits consumers are seeking and therefore which attributes are most
important in terms of making a decision.

Purchase decision:

Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The
marketing organization must facilitate the consumer to act on their purchase intention. The
provision of credit or payment terms may encourage purchase, or a sales promotion such
as the opportunity to receive a premium or enter a competition may provide an incentive to
buy now. The relevant internal psychological process that is associated with purchase
decision is integration.

Postpurchase evaluation:

The EKB model was further developed by Rice (1993) which suggested there should be a
feedback loop, Foxall (2005) further suggests the importance of the post purchase
evaluation and that the post purchase evaluation is key due to its influences on future
purchase patterns.

Types of Consumer Buying Behavior

Types of consumer buying behavior are determined by:

•Level of Involvement in purchase decision. Importance and intensity of interest in a product
in a particular situation.

•Buyers level of involvement determines why he/she is motivated to seek information about
a certain products and brands but virtually ignores others. High involvement purchases--

34

Honda Motorbike, high priced goods, products visible to others, and the higher the risk the
higher the involvement.

Types of risk:

 Personal risk
 Social risk
 Economic risk

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior:

--Buying low involvement frequently purchased low cost items; need very little search and
decision effort; purchased almost automatically. Examples include soft drinks, snack foods,
milk etc.

Extensive Decision Making:

/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High
degree of economic/performance/psychological risk. Examples include cars, homes,
computers, education. Spend a lot of time seeking information and deciding.Information
from the companies MM; friends and relatives, store personnel etc. Go through all six
stages of the buying process.

Impulse buying:

The purchase of the same product does not always elicit the same Buying Behavior.
Product can shift from one category to the next For example:Going out for dinner for one
person may be extensive decision making (for someone that does not go out often at all),
but limited decision making for someone else.

35

Limited Decision Making:

--Buying product occasionally. When you need to obtain information about unfamiliar brand
in a familiar product category, perhaps. Requires a moderate amount of time for information
gathering. Examples include Clothes--know product class but not the brand.

Factors of influences:

A consumer’s buyer behavior is influenced by four major factors; cultural, social, personal,
and psychological factors. These factors cause consumers to develop product and brand
preferences. Although many of these factors cannot be directly controlled by marketers,
understanding of their impact is essential as marketing mix strategies can be developed to
appeal to the preferences of the target market.

When purchasing any product, a consumer goes through a decision process. This process
consists of up to five stages: problem recognition, information search, evaluation of
alternatives, purchase decisions and post purchase behavior. The length of this decision
process will vary, ranging from a shorter routine response behavior, to limited problem
solving and a more comprehensive extensive problem solving. A consumer may not act in
isolation in the purchase, but rather may be influenced by any of several people in various
roles. The number of people involved in the buying decision increases with the level of
involvement and complexity of the buying decision behavior.

Buyer- the person who makes the actual purchase.

CULTURAL factors include a consumer's culture, subculture and social class. These factors
are often inherent in our values and decision processes.

Other people often influence a consumer’s purchase decision. The marketer needs to know
which people are involved in the buying decision and what role each person plays, so that
marketing strategies can also be aimed at these people.

Data from the Consumer Expenditure Survey are used in a number of different ways by a
variety of users. Market researchers find the data useful in analyzing the demand for groups
of goods and services. The data allow them to track spending trends of different types of

36

consumer. Government and private agencies use the data to study the welfare of particular
segments of the population, such as of consumer units with a reference person age 65 and
over or under age 25, or for low-income consumer units. Economic policymakers use the
data to study the impact of policy changes in the welfare of different socioeconomic groups.
Researchers use the data in a variety of

Cultural Factors:

In a diversified country like India cultural factors exert the broadest and deepest influence
on consumer behavior; we will look at the role played by the buyer’s culture, subculture,
and social class.

Culture: Culture is the most fundamental determinant of a person’s wants and behavior.
Whereas lower creatures are governed by instinct, human behavior is largely learned. The
child growing up in a society leans a basic set of values, perceptions, preferences and
behaviors through a process of socialization involving the family and other key institution
.Thus a child growing up in America is exposed to the following values: Achievement and

37

success, activity , efficiency and practicality, progress, material comfort, individualism,
freedom, external comfort, humanitarianism, and youthfulness.

Subculture:

Each culture contain smaller group of subculture that provide more specific identification
and socialization for its members. Four types of subculture can be distinguished .Nationality
groups such as the Irish, polish, Italians, and Puerto Ricans are found with in large
communities and exhibits distinct ethnic tastes and Jews represent subculture with specific
culture preference and taboos.

Social Class:

Virtually all human societies exhibit social stratification. Stratification sometimes takes the
form of a caste system where the members of different caste are reared for certain roles
and cannot change their caste membership .More frequently; stratification takes the form of
social classes.

Social Classes have several characteristics. First, Person with in each social class tends to
behave more alike than persons from two different social classes. Second, persons are
perceived as occupying inferior or superior positions according to their social class. Third, a
person’s social class is indicated by a number of variables, such as occupation, income,
wealth, education , and value orientation, rather than by any single variable , fourth,
individuals are able to move from one social class to another up or down during their
lifetime. The Extent of this mobility varies according to the rigidity of social stratification a
given society.

Social Factors:

A consumer’s behavior is also influenced by social factors, such as the consumer’s
reference group, family, and social roles and statuses.

Reference Group: A person’s behavior is strongly influenced by many group .A persons
reference group are those groups that have a direct (face to face) or indirect influence on
the person’s attitudes or behavior. Group having a direct influence on a person are called
membership group. These are group to which the person belongs and interacts. Some are

38

primary groups. With which there is fairly continuous interaction, such as family, friends,
neighbors, and co-workers. Primary group tend to be informal. The person also belong to
secondary group, which tend to be more formal and where there is less continuous
interaction: they include religious organizations, professional associations, and trade
unions.

Family Group:

Members of the buyer’s family can exercise a strong influence on the buyer’s behavior. we
can distinguish between two families in the buyer’s life . The family of orientation consists of
one’s parents. From parents a persons acquires an orientation towards religious, politics,
and economics and a sense of personal ambitions, self –worth, and love. Even if the buyer
no longer interacts very much with his or her parents, the parents influence on the
unconscious behavior of the buyer can be significant. In countries where parents continue
to live with their children, their influence can be substantial.

In case of expensive products and services, husband and wives engage in more joint
decision making. The market needs to determine which member normally has the greater
influence in the purchase of a particular products or services. Either the husband or the
wife, or they have equal influence. The following products and services fall under such:

Husband – dominant: life insurance, automobiles, television
Wife – dominant: washing machines, carpeting, non –living – room furniture, kitchenware
Equal: Living – room furniture, vacation, Housing, outside entertainment.

How to succeed:

Companies like Nokia, Reebok, Coke, PepsiCo and major automobile giants like Toyota,
Suzuki, Ford, Chevrolet, Mercedes etc.. Has made a market for themselves in India. How
did they establish their own individual market in a country like India which is prone to
diverse cultures? Let’s take the example of Ford. Before establishing their base in India,
they engaged in a lot of researches. Their researches were made on the Indian people’s
social life, personal tastes and preferences, way of life, how they identify an effective
product and what makes them get attracted towards a product. The social and economic
conditions were analyzed.

39

The general economy of India was also researched on. They had modified their product to
suit the Indian conditions. Their technology had to be adjusted and suited to such an extent
that their car is adaptable to Indian conditions. Indians are generally prone to be rough and
tough customers and especially taking into account the road conditions and other social
factors they designed the product in such a way that it’s best suited to the conditions and
it’s received by the target customers. Today Ford is enjoying a huge market in India. If an
automobile company from a different country can make wonders why cannot our own
manufacturers adapt to these techniques.

A customer’s want has to be identified and his expectations must be matched with the other
economic and social factors so that their product is receptive. This can be related to any
product. Reebok today is enjoying a huge market in India even though they have hired a
company which is phoenix to manufacture shoes and operate under Reebok. How did they
achieve this? Adapting to social conditions play the most important role in establishing your
brand in the market.

This also means that customers are open to new and different products from time to time.
It’s just that they want the product to be flexible and adaptable to their needs and
preferences. People are changing from time to time, so do their tastes and preferences.
Identifying those is the first step towards achieving success and the rest depends on the
performance of the product.

Internal influences:

Consumer behavior is influenced by: demographics, psychographics (lifestyle), personality,
motivation, knowledge, attitudes, beliefs, and feelings. Consumer behavior concern with
consumer need consumer actions in the direction of satisfing needs leads to his behaviour
behaviour of every individual depend on thinking process

External influences:

Consumer behavior is influenced by: culture, sub-culture, locality, royalty, ethnicity, family,
social class, reference groups, lifestyle, and market mix factors.

40

In 2003, the fresh fruit and vegetables market was valued at £7.6bn at current prices,
having increased by just 3.9% since 1999. Marginal growth in the green vegetables and
potatoes sectors is largely responsible for the limited growth of the market. The fresh fruit
sector accounts for 38.1% of the overall market and is gaining share. This is probably
explained by the continuing trend towards convenience eating as fruit generally requires
little or no preparation, while vegetables usually require preparation and cooking.
Meanwhile, both the fruit and vegetables sectors have benefited from widespread publicity
about the positive impact on health of consuming fruit and vegetables regularly. Indeed, the
scientific evidence that fruit and vegetable consumption can protect against cancer and
other illnesses now appears overwhelming, with studies from around the world highlighting
the benefits of eating even small amounts. In the UK, a government drive to encourage
people to eat more fruit and vegetables may be having a positive effect on the market. The
Department of Health's Five-a-Day Programme, for example, is designed to encourage
consumers to eat five 80 gram portions of fresh fruit and vegetables a day.

Most consumers now buy their fresh vegetables and fruit from the grocery multiples, rather
than specialist fruit and vegetable stores. The multiples tend to display fruit and vegetables
at the entrance to their store in the belief that a display of bright colors presents an
attractive and healthy image of their store to consumers. The supermarkets have also
helped to increase the variety of fruit and vegetables available to the consumer and have
exploited growing demand for convenience products by introducing an ever-growing range
of prepared fruit and vegetables. These include repacked fruit and vegetable mixes, with
the fruit and vegetables peeled and ready to cook. A wide variety of fresh salad mixes is
available. Brands have never had the same impact in the fresh fruit and vegetables sector
as in other areas of the food market. However, the main suppliers say that this is now
changing and the major retailers are increasingly willing to carry brands alongside their own
products.

Its expects fruit consumption to continue to increase over the next few years, as the trends
of growing demand for convenience foods and concerns over health continue to influence
consumers. In addition, the growing presence of brands in the fruit sector should also drive
demand. However, consumption of potatoes and other vegetables is likely to continue its
downward trend. Potatoes are losing out as British people switch from their once staple
food item to more convenient alternatives, such as pasta and rice. Meanwhile, frozen
41

vegetables are likely to continue to win market share at the expense of fresh produce, such
as beans and peas. Some sectors, such as prepared vegetables and salads should
continue to grow rapidly. Intensifying competition among retailers is likely to undermine
value growth with the market expanding by just 3% in value terms between 2004 and 2008.

42

India Retail Industry

India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise
25% yearly being driven by strong income growth, changing lifestyles, and favorable
demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007
to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of
7-8% is expected in the industry of retail in India by growth in consumerism in urban areas,
rising incomes, and a steep rise in rural consumption. It has further been predicted that the
retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of
US$ 7.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering. Industry of retail in India which has
become modern can be seen from the fact that there are multi- stored malls, huge shopping
centers, and sprawling complexes which offer food, shopping, and entertainment all under
the same roof.

India retail industry is expanding itself most aggressively; as a result a great demand for
real estate is being created. Indian retailers preferred means of expansion is to expand to
other regions and to increase the number of their outlets in a city. It is expected that by
2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate
of 9% annually. The branded food industry is trying to enter the India retail industry and
convert Indian consumers to branded food. Since at present 60% of the Indian grocery
basket consists of non- branded items.

India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.

43

The lifestyle and profile of the Indian consumer is going through a rapid transformation. The
population of India is young, energetic and full of enthusiasm. 50% of the Indian population
is under the age of 25. There has been a transition from price consideration to quality and
design, as the focus of the customer has changed. The upper and middle- class population
of today needs a feel good experience even if they have to spend a little more for that.
People are moving towards luxury and want to experiment with fashion and technology.
There is an increasing need of better apparels, cars, mobile phones and consumer
durables.

The food & grocery, clothing, consumer durables and books & music sectors are the major
retail sectors. However, unorganized small outlets largely control the sector. Hence there is
tremendous potential for the organized sector in various formats, such as hypermarkets,
supermarkets, specialty stores, category killers and discount chains.

44

The Indian retail market, which is the fifth largest retail destination globally, has been
ranked the second most attractive emerging market for investment after Vietnam in the
retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in
2008. The share of retail trade in the country's gross domestic product (GDP) was between
8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent
by 2010.

A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian
consumer market is likely to grow four times by 2025. Commercial real estate services
company, CB Richard Ellis' findings state that India's retail market is currently valued at
US$ 511 billion.

Banks, capital goods, engineering, fast moving consumer goods (FMCG), software
services, oil marketing, power, two-wheelers and telecom companies are leading the sales
and profit growth of India Inc in the fourth quarter of 2008-09. India continues to be among
the most attractive countries for global retailers. At US$ 511 billion in 2008, its retail market
is larger than ever and drawing both global and local retailers. Foreign direct investment
(FDI) inflows as on January 2009, in single-brand retail trading, stood at approx. US$ 25.18
million, according to the Department of Industrial Policy and Promotion (DIPP).

India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3
trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic
country with high growth rates, consumer spending has risen sharply as the youth
population (more than 33 percent of the country is below the age of 15) has seen a
significant increase in its disposable income. Consumer spending rose an impressive 75
per cent in the past four years alone. Also, organized retail, which accounts for almost 5 per
cent of the market, is expected to grow at a CAGR of 40 per cent from US$ 20 billion in
2007 to US$ 107 billion by 2013.

India has emerged the third most attractive market destination for apparel retailers,
according to a new study by global management consulting firm AT Kearney. It further says
that in India, apparel is the second largest retail category, representing 10 per cent of the
US$ 37 billion retail market. It is expected to grow 12-15 per cent per year. Apparel, along
with food and grocery, will lead the organized retailing in India. India has one of the largest

45

numbers of retail outlets in the world. A report by Images Retail estimates the number of
operational malls to grow more than two-fold, to cross 412, with

205 million square feet by 2010, and a further 715 malls to be added by 2015, with major
retail developments even in tier-II and tier-III cities in India.

• Marks & Spencer Reliance India is planning to open 35 more stores over the next
five years, according to Mark Ashman, CEO of the company. The 51:49 joint
ventures between UK’s Marks and Spencer and Reliance Retail Ltd already have 15
stores in India.
• Future Group has been restructured to test the new rules on FDI under Press Notes
2, 3 and 4 issued in February 2009. The company plans to bring in up to US$ 148.7
million in foreign investment. Although FDI is permitted only in single-brand retail and
not permitted in multi-brand retail businesses like Future Group's, the conglomerate
has created two layers of operations to take advantage of the three Press Notes that
allow FDI up to 49 per cent in operating-cum-investment companies as long as they
are owned and controlled by Indians.
• Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by
2010 and plans to set up its first cash-and-carry outlet in the National Capital Region.
Currently, Carrefour exports goods worth US$ 170 million from India to Europe,
UAE, Indonesia, Europe, Thailand, Singapore and Malaysia.
• Jeweler’s manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up
a chain of exclusive retail outlets called Shuddi–Sampurna Vishwas. The joint
venture, which plans to open around 60 stores across India by end of this year, will
retail hallmarked gold and diamond jewelers.
• Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$
19.8 million by 2010 to step up its specialty retail concept 'Mom and Me'.

46

Policy Initiatives:

100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements
are also permitted in retail trade.

51 per cent FDI is allowed in single-brand retailing.

Growth of Retail Companies in India:

Growth of Retail Companies in India exhibits the boom in the retail industry in India over
the years. The increase in the purchasing power of the Indian middle classes and the influx
of the foreign investments has been encouraging in the Growth of Retail Companies in
India.

Growth of Road Ahead:

According to industry experts, the next phase of growth is expected to come from rural
markets, with rural India accounting for almost half of the domestic retail market, valued
over US$ 300 billion. Rural India is set to witness an economic boom, with per capita
income having grown by 50 per cent over the last 10 years, mainly on account of rising
commodity prices and improved productivity.

According to retail and consumer products division, E&Y India, basic infrastructure,
generation of employment guarantee schemes, better information services and access to
funding are also bringing prosperity to rural households. The rural market, product design
will need to go beyond ideas like smaller sizes (such as single use sachets) to create
genuinely new products, according to Ramesh Srinivas, national industry director
(consumer markets), KPMG India.

According to the Investment commission of India, the overall retail market is expected to
grow from US$ 262 billion to about US$ 1065 billion by 2016, with organized retail at US$
165 billion (approximately 15.5 per cent of total retail sales). India is expected to be among
the top 5 retail markets in the world in 10 years.
47

According to new market research report by RNCOS titled, "Booming Retail Sector in
India", organized retail market in India is expected to reach US$ 50 billion by 2011.

• Number of shopping malls is expected to increase at a CAGR of more than 18.9 per
cent from 2007 to 2015.
• Rural market is projected to dominate the retail industry landscape in India by 2012
with total market share of above 50 per cent.
• Organized retailing of mobile handset and accessories is expected to reach close to
US$ 990 million by 2010.
• Driven by the expanding retail market, third party logistic market is forecasted to
reach US$ 20 billion by 2011.

The Indian food market, according to the 'India Food Report 2008' by Research and
Markets is estimated at over US$ 182 billion, and accounts for about two thirds of the total
Indian retail market. Further, according to consultancy firm McKinsey & Co., the retail
food sector in India is likely to grow from around US$ 70 billion in 2008 to US$ 150 billion
by 2025, accounting for a large chunk of the world food industry, which would grow to US$
400 billion from US$ 175 billion by 2025.

The growth of the food industry in India stems from the consistently increasing agricultural
output. With the second largest arable and area in the world, India is one of the key food
producing countries in the world, second only to China.

In fact, the year 2008 has been a record year for India’s food grain sector with increased
production, acreage under cultivation and record procurements.

Further, according to an Economic Times analysis, one out of every five listed companies in
India confirmed higher profits during the first half of fiscal 2008–09, with farm inputs and
farm machinery companies achieving the biggest profits.

According to Mr Subodh Kant Sahai, the Union Minister of State for MFPI, the food
processing industry in India was seeing growth even as the world was facing economic
recession. According to the minister, the industry is presently growing at 14 per cent against
6–7 per cent growth in 2003–04. Foreign direct investments (FDI) totaling US$ 143.80
million was put into the food processing industry in 2007–08 against US$ 5.70 million in the
previous fiscal.
48

Advantage:

• India is the largest producer of milk in the world, and is likely to become the second
largest dairy products producer in the coming years.
• It is the second largest producer of fruits and vegetables.
• It is home to the largest number of livestock in the world.
• It is the third largest producer food grains.
• It has the third largest output of fish.
• With above 9500 spices from medicinal and aromatic plants, India is truly a treasure
trove of spices, accounting for 25-30 per cent of the world’s production. India is the
largest producer consumer and exporter of spices, with major spices produced being
black pepper, cardamom (small & large), ginger, garlic, turmeric, chilli etc.

49

Growth of Retail Companies in India is still not yet in a matured stage with great potentials
within this sector still to be explored. Apart from the retail company like Nilgiri's of
Bangalore, most of the retail companies are sections of other industries that have stepped
in the retail sector for a better business. The Growth of Retail Companies in India is most
pronounced in the metro cities of India; however the smaller towns are also not lagging
behind in this. The retail companies are not only targeting the four metros in India but also
is considering the second graded upcoming cities like Ahmadabad, Baroda, Chandigarh,
Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South
Indian zone have adopted the process of shopping in the supermarkets for their daily
requirements and this has also been influencing other cities as well where many
hypermarkets are coming up day to day.

Reasons for the fast Growth of Retail Companies in India:

The retail companies are found to be rising in India at a remarkable speed with the years
and these have brought a revolutionary change in the shopping attitude of the Indian
customers. The Growth of Retail Companies in India is facilitated by certain factors like -
 existing Indian middle classes with an increased purchasing power
 rise of upcoming business sectors like the IT and engineering firms
 change in the taste and attitude of the Indians
 effect of globalization
 heavy influx of FDI in the retail sectors in India

In 2003, the fresh fruit and vegetables market was valued at £7.6bn at current prices,
having increased by just 3.9% since 1999. Marginal growth in the green vegetables and
potatoes sectors is largely responsible for the limited growth of the market. The fresh fruit
sector accounts for 38.1% of the overall market and is gaining share. This is probably
explained by the continuing trend towards convenience eating as fruit generally requires
little or no preparation, while vegetables usually require preparation and cooking.
Meanwhile, both the fruit and vegetables sectors have benefited from widespread publicity
about the positive impact on health of consuming fruit and vegetables regularly. Indeed, the
scientific evidence that fruit and vegetable consumption can protect against cancer and
other illnesses now appears overwhelming, with studies from around the world highlighting
the benefits of eating even small amounts. In the UK, a government drive to encourage

50

people to eat more fruit and vegetables may be having a positive effect on the market. The
Department of Health's Five-a-Day Programmed, for example, is designed to encourage
consumers to eat five 80 gram portions of fresh fruit and vegetables a day.

Most consumers now buy their fresh vegetables and fruit from the grocery multiples, rather
than specialist fruit and vegetable stores. The multiples tend to display fruit and vegetables
at the entrance to their store in the belief that a display of bright colors presents an
attractive and healthy image of their store to consumers. The supermarkets have also
helped to increase the variety of fruit and vegetables available to the consumer and have
exploited growing demand for convenience products by introducing an ever-growing range
of prepared fruit and vegetables. These include repacked fruit and vegetable mixes, with
the fruit and vegetables peeled and ready to cook. A wide variety of fresh salad mixes is
available. Brands have never had the same impact in the fresh fruit and vegetables sector
as in other areas of the food market. However, the main suppliers say that this is now
changing and the major retailers are increasingly willing to carry brands alongside their own
products.

Its expects fruit consumption to continue to increase over the next few years, as the trends
of growing demand for convenience foods and concerns over health continue to influence
consumers. In addition, the growing presence of brands in the fruit sector should also drive
demand. However, consumption of potatoes and other vegetables is likely to continue its
downward trend. Potatoes are losing out as British people switch from their once staple
food item to more convenient alternatives, such as pasta and rice. Meanwhile, frozen
vegetables are likely to continue to win market share at the expense of fresh produce, such
as beans and peas. Some sectors, such as prepared vegetables and salads should
continue to grow rapidly. Intensifying competition among retailers is likely to undermine
value growth with the market expanding by just 3% in value terms between 2004 and 2008.

Protests against retail chains getting into fruits and vegetables:

At least three major cities saw protests in May against Reliance, India's largest corporation,
entering the business of retailing fresh vegetables and fruits through its brand Reliance

51

Fresh. In Ranchi and Indore, the protests had political backing and turned violent. The
protestors, mostly street vendors, fear the company's low prices will destroy their market.

While it is too early to know if their fears are founded in reason or hype, the protests also
stem from the fact that they feel cheated by a government that is in a hurry to promote large
retail businesses and refuses to keep its promises made to small vendors and retailers,
who control about 95 per cent of the country's overall retail business.

India has an estimated 12 million street vendors in its cities—the 2004 National Policy For
Urban Street Vendors pegs it at 10 million—and roughly 2.5 per cent of each city's
population is engaged in vending on streets."About one-fourth of these vendors sell
vegetables and fruits,' says Madhu Kishwar, senior fellow at the Centre for the Studies of
Developing Societies, Delhi. But "there has been little progress on the 2004 policy, which
recognised the value of Services Street vendors provide and the state's duty to protect their
rights', says Kishwar, who was among the people pushing for the policy.

Who is to take the hit?

"We want a level playing field,' says Arbind Singh, coordinator of the National Association of
Street Vendors of India in Patna."There is no government recognition, credit availability or
institutional support for street vendors. They have to wage daily battles with the police,
municipal authorities and local goons, and bribe them on a weekly basis,' Singh says. "See
this against the single-window clearance for the industry, and you'll realise our grievance.
Like industries, we too generate employment and offer services. Why should we be
discriminated against?' asks Basant Haryana, leader of a street vendors' union in Jaipur.
"Our protest was peaceful. It wasn't led by narrow political interests. Rather it came from
those fearing loss of livelihood,' says fellow union leader Ghanshyam Kotwal. "The Ranchi
protest turned violent due to goons infiltrating our rally,' says Kaushal Kishore of the
Jharkhand Educated Unemployed Footpath Vendors' Association."We have very little, and
that too we will lose to competition that has unfair government support.'

Singh says the retail chains' low prices are because of their ability to take losses over years
—leading losses—to out-price competitors. "Once the small players are gone.

52

Retail rush:

Many visible corporate brands are into the retail business: Reliance, ITC, Bharti, Big
Bazaar, Godrej and Subhiksha. India has not allowed FDI in multi-brand retailing. But
international behemoths like Wal-Mart, which has a deal with Bharti, are raring for joint
ventures. (Wal-Mart is world's largest retailer and the second largest corporation. Labour
unions, women's rights groups, and grassroots organisations have long argued that the
reason for Wal-Mart's cheap prices is how shoddily it treats its employees. Wal-Mart had to
leave Germany and South Korea because it did not get the kind of room for its policies as in
the US and other countries.)

Fresh fruits and vegetables (FFV) are a small part of this retail juggernaut. "Even if retail
chains do very well, they will capture only 10 per cent of the FFV market in another five to
10 years,' says P Chengappa, professor of agricultural marketing at the University of
Agricultural Sciences, Bangalore."Retail chains do well in non-perishable items but fail to
capture the market of perishables. Besides, the Indian market is too large, with too many
commodities and far too many small players. Bangalore alone consumes about 10,000
tonnes of FFV every day. Nobody would have the money to come up with cold storage
chains and backward integration of the supply chain to control such a market.'

This doesn't mean there is no money to be made in the retail of perishables. "In India,
organised retail of perishables may be small, but some successful players have been
around for long: Mother Dairy and Safal are two significant brands. Both are cooperatives
and haven't affected vendors in any way,' says Ashok Gulati, chairperson of the south Asia
office of the International Food Policy Research Institute. The institute is due to come out
with a study on FFV retails led by Thomas Reardon, a known authority on retail business in
developing countries. Gulati, a supporter of the retail revolution, says farmers will benefit by
way of a better price.

All for farmers:

Better price for farmers is the high point of the policy sales pitch of everybody, from the
government to retail chains like Reliance Fresh. Sources close to Reliance say the

53

company will not get into any controversial deal like contract farming. Instead, it has an
ambitious marketing network for purchase and storage with direct contact with farmers. The
company has issued a gag order to its employees as the operations are in pilot stage. But
sources say organised retailers can offer prices lower than the market because of
economies of scale, and because they "eliminate the middleman' and bring more efficiency
by cutting down wastage losses, around 30 per cent now. Wastage loss will reduce, they
say, when the same company handles the produce from the farm to the fork, as against
now, when farm produce goes through several levels of wholesale and tertiary traders
before reaching the retailer. Losses further reduce with investments in cold-storage.

Metha Ram Kriplani, member of the Agricultural Produce Market Committee of Delhi's
Azadpur, India's largest market for FFV, refutes this: "In the existing supply chains of FFV,
all the business is on credit among traders, and payment gets stuck in case of bad handling
and wastages. Traders also invest in cold storages. What rocket science will these retail
chains bring?'

S Sivakumar, chief executive of ITC's agribusiness e-choupal Fresh in Hyderabad says,
"Given the peculiarities of the Indian market, retail of FFV has to be different. Their annual
reports should reflect not only financial results but also social and environmental
allegiance.' ITC is planning to organise street vendors and give them recognition, along with
pushcarts and uniform. There is "a case for regulation of the market to protect interests of
consumers, farmers and competitors', says Sivakumar. Reliance, tired of the bad press it
gets, also talks about having a regulatory body to settle all disputes.

Regulation:

"Unlike non-perishables like food grains, there is no mechanism to regulate the market of
perishables in India except the Essential Commodities Act, 1955,' says Chengappa. Retail
of FFV involves at least three ministries: agriculture, commerce, and consumer affairs, but
none has formally discussed the possibility of a regulatory body to check unfair and
monopolistic practices, or monitor prices paid to farmers. Sources in the Union ministry of
consumer affairs say they have held informal discussions on the issue. The Communist
Party of India (Marxist), a supporter of the UPA government at the centre, has recently
asked for a regulatory body for the organised retail industry.
54

Ravi's report

Recommended

Recommended

More Related Content

Similar to Ravi's report

Similar to Ravi's report (20)

Recently uploaded

Recently uploaded (20)

Ravi's report