Vamnicom enlighten jul aug 13 edition

Editorial
Narendra Pawar
PGDM-ABM, VAMNICOM
09762282757
It gives us great pleasure to introduce the
“Rejuvenation Special” edition of ‘Enlighten freedom
of thoughts’ as rain brings enthusiasm and joy in the
ambiance, so theme of the issue relish Rain;
Rejuvenation, Instigation, Revival & Bliss…
So as convivial atmosphere of July, this
edition welcomes VAMNICOM’S 21st
batch and more
importantly Mr. Sanjeeb Patjoshi IPS IG, as new
Director of VAMNICOM & CICTAB,
ENLIGHTEN’s Best wishes for the same.
July issue is with some appealing responses
of previous. Reader will enjoy an array, articles like
Workplace Conflict Resolution for efficient corporate
working with more on Commodity Market, whereas
Farm Credit, Rural Consumerism focusing on rural
development and the month’s special Cooperative
Dairying by Mr. Sanjeeb Patjoshi elaborating about
red issue of Naxalism and possible solutions, in
addition to this Nagarjuna Agrichem Limited
(NACL) in corporate visit and last but not least fun
corner, to rejuvenate!!
We thank all those who contributed towards
this issue and we fervently hope to get more
articles in the future from the industry and
academia and take ENLIGHTEN to greater height
and As always, if there is anything we are missing
or an event you would like to tell us about, email us
and we'll get right on it.
So be ready to be enlightened, be in it…
Hope you will find an interesting read,
“Rain is grace; rain is the sky condescending to the earth; without rain, there would be no life. “
John Updike
Dear Readers,
Greetings from VAMNICOM,
We are very thankful for your valuable suggestions and support. Enlighten is dedicated to students as well as
corporates. Enlighten is getting new heights on every editions due to your guidance. Potentials explore career
strategies, the latest in research, and important technical developments. Through its articles, it also relates
theories to practical applications and highlights technology’s global impact. Enlighten is interested in gathering
together all possible external contributions.
You can also contribute depending upon your expertise in various fields.
If you have an interesting story about this, write it down and share with the rest of all. Your suggestion are
always welcome and a source of inspiration for our readers.
Sharing is caring!
Surykant Verma
PGDM-ABM, VAMNICOM
09595490167

Workplace
Conflict Resolution“Knowing when to fight is just as
important as knowing how.”
- Terry Goodkind,
In many cases, conflict in the
workplace just seems to be a fact
of life. There are number of cases
where different people with
different goals and needs have
come into conflict. The fact that
conflict exists, however, is not
necessarily a bad thing: As long as
it is resolved effectively, it can
lead to personal and professional
growth.
In many cases, effective conflict
resolution skills can make the
difference between positive and
negative outcomes.
By resolving conflict successfully,
you can solve many of the problems
that it has brought to the surface,
as well as getting benefits that you
might not at first expect:
 Increased understanding
 Increased group cohesion
 Improved self-knowledge
However, if conflict is not handled
Thomas and Kilmann's styles are:
Competitive: People who tend towards a competitive style take a firm stand,
and know what they want. They usually operate from a position of power, drawn
from things like position, rank, expertise, or persuasive ability. This style can be
useful when there is an emergency and a decision needs to be make fast; when
the decision is unpopular; or when defending against someone who is trying to
exploit the situation selfishly. However it can leave people feeling bruised,
unsatisfied and resentful when used in less urgent situations.
effectively, the results can be
damaging. Conflicting goals can
quickly turn into personal dislike.
Teamwork breaks down.
Talent is wasted as people
disengage from their work. And
it's easy to end up in a vicious
downward spiral of negativity and
recrimination.
Understanding the Theory:
Conflict Styles
As per Kenneth Thomas and Ralph
Kilmann there are five main styles
of dealing with conflict that vary
in their degrees of
cooperativeness and
assertiveness. They argued that
people typically have a preferred
conflict resolution style. However
they also noted that different
styles were most useful in
different situations. The Thomas-
Kilmann Conflict Mode Instrument
(TKI) helps you to identify which
style you tend towards when
conflict arises.
By Mr. Sanjeev Shahi
Manager, ICICI Bank Ltd.
Enlighten freedom of thoughts 2 July-Aug 13

Collaborative: People
tending towards a
collaborative style try to
meet the needs of all people
involved. These people can
be highly assertive but unlike
the competitor, they
cooperate effectively and
acknowledge that everyone is
important. This style is useful
when you need to bring
together a variety of
viewpoints to get the best
solution; when there have
been previous conflicts in the
group; or when the situation
is too important for a simple
trade-offs.
Compromising: People who
prefer a compromising style
try to find a solution that will
at least partially satisfy
everyone. Everyone is
expected to give up
something and the
compromiser him- or she also
expects to relinquish
something. Compromise is
useful when the cost of
conflict is higher than the
cost of losing ground, when
equal strength opponents are
at a standstill and when there
is a deadline looming.
Accommodating: This style
indicates a willingness to
meet the needs of others at
the expense of the person’s
own needs.
The accommodator often
knows when to give in to
others, but can be persuaded
to surrender a position even
when it is not warranted.
This person is not assertive
but is highly cooperative.
Accommodation is
appropriate when the issues
matter more to the other
party,
When peace is more
valuable than winning, or
when you want to be in a
position to collect on this
“favor” you gave.
However people may not
return favors, and overall
this approach is unlikely
to give the best
outcomes.
Avoiding: People tending
towards this style seek to
evade the conflict
entirely. This style is
typified by delegating
controversial decisions,
accepting default
decisions, and not
wanting to hurt anyone’s
feelings. It can be
appropriate when victory
is impossible, when the
controversy is trivial, or
when someone else is in a
better position to solve
the problem. However in
many situations this is a
weak and ineffective
approach to take.
Once you understand the
different styles, you can
use them to think about
the most appropriate
approach (or mixture of
approaches) for the
situation you're in. Ideally
you can adopt an
approach that meets the
situation, resolves the
problem, respects
people's legitimate
interests, and mends
damaged working
relationships.
Understanding the
Theory: The "Interest-
Based Relational
Approach"
The second theory is
commonly referred to as
the "Interest-Based
Relational (IBR)
Approach". This conflict
resolution strategy
respects individual
differences while helping
people avoid becoming
too entrenched in a fixed
position.
Step Two: Gather
Information
Here you are trying to get
to the underlying
interests, needs, and
concerns. Ask for the
other person’s viewpoint
and confirm that you
respect his or her opinion
and need his or her
cooperation to solve the
problem.
Step Three: Agree the
Problem
This sounds like an
obvious step, but often
different underlying
needs, int and goals can
cause people to perceive
problems very differently.
You'll need to agree the
problems that you are
trying to solve before
you'll find a mutually
acceptable solution.
Step Four: Brainstorm
Possible Solutions
If everyone is going to feel
satisfied with the
resolution, it will help if
everyone has had fair
input in generating
solutions. Brainstorm
possible solutions, and be
open to all ideas,
including ones you never
considered before.
Step Five: Negotiate a
Solution
By this stage, the conflict
may be resolved: Both
sides may better
understand the position of
the other, and a mutually
satisfactory solution may
be clear to all.
However you may also
have uncovered real
differences between your
positions. This is where a
technique like win-win
negotiation can be useful
to find a solution that, at
least to some extent,
satisfies everyone.
There are three guiding
principles here:
Be Calm,
Be Patient,
Have Respect…
*****
* In resolving
conflict using this
approach, you
follow these
rules: Make sure
that good
relationships are
the first priority
* Keep people and
problems
separate
* Pay attention to
the interests that
are being
presented
* Listen first; talk
second
* Set out the
“Facts”
* Explore options
together
By following these rules,
you can often keep
contentious discussions
positive and constructive.
This helps to prevent the
antagonism and dislike
which so-often causes
conflict to spin out of
control.
Using the Tool: A
Conflict Resolution
Process
Based on these
approaches, a starting
point for dealing with
conflict is to identify the
overriding conflict style
employed by yourself,
your team or your
organization.
Then use the process
below to resolve the
conflict:
Step One: Set the Scene
If appropriate to the
situation, agree the rules
of the IBR Approach.
Make sure that people
understand that the
conflict may be a mutual
problem, which may be
best resolved through
discussion and negotiation
rather than through raw
aggression.
‘Let creativity come from a conflict of ideas.’
Donatella Versace

Farm Credit By -Dr.V.S. Kaveri
National Institute Of Bank Management
Some Suggestions
Farmers in general feel that is that they
have not been able to derive benefits of
financial sector reforms in India. In other
words, they suffer from inadequate, delayed
and high cost bank credit. This is evident
from hesitancy developed on the part of
branch managers to provide farm credit
which is evident from decline in farm credit
.But Reserve Bank of India is keen to
promote agri-finance for which many expert
committees have been appointed from time
to time to suggest changes systems and
procedures relating to financing of
 Identification of collateral substitutes – group lending/SHGs.
 Data Bank to be created in banks to provide the required information to the branch
managers on technical aspects of appraisal of farm projects.
 Appraisal skills of bank officers to be upgraded to appraise hi-tech agri projects.
 Simplification of procedures to reduce the time presently taken in appraisal.
 Rating of farmers – a separate agency to be created.
 In tribal areas, Tribal Development Corporation to provide guarantee to banks.
 Food storage, food processing and marketing of food products which are potential areas
for banks to lend.
 RBI to insist on banks to fulfill the target of 18%.
 Outlook of bankers to be changed towards farmers who produce food for people.
Training and education to bankers have an important role to play.
 Farmers have to appreciate compliance of bank formulation and extend co-operation to
banks.
agriculture sector. It has also numerous
incentives to banks to step up credit flow to
the agriculture sector. Further, the
Government of India has considered bank
finance as a crucial input to improve
productivity of the sector For instance;
recently, it announced agriculture debt
waiver and relief scheme to make even
defaulted farmers eligible for fresh loans
from banks. Despite these initiatives,
farmers continue to suffer because of the
conservative mind-set of banks .Towards
this, the following suggestions are offered.
“The ultimate goal of farming is not the growing of crops, but the cultivation and
perfection of human beings.”
― Masanobu Fukuoka,

Cooperative Dairying:
White Revolution as effective solution for
Naxal menaces- Ultra Red Terror and
unresolved burning issues of dairy sector “
MONTH’S SPECIAL
Introduction
Naxali
Long ago, on 25-May-1967, in
Naxalbari village in West Bengal, local
goons attacked a tribal who had been
allotted land by the courts under the
tenancy laws. The tribals retaliated
against the landlords and reclaimed
the land. From this Naxalbari uprising,
the word ‘Naxalite or Naxals’ got
coined.
Mr. Sanjeeb Patjoshi IPS, IG
Director
VAMNICOM & CICTAB,
Pune

Primitive tribal groups are tribal communities
among the STs who live in near isolation in inaccessible
habitats. They are characterized by a low rate of growth of
population, pre-agricultural level of technology and
extremely low levels of literacy.
Tribals are most vulnerable and gullible to be
misdirected, digressed, indoctrinated and lured into
Naxalism ideology with exploitation of their illiteracy,
seasonal unemployment, poverty, attraction of lethal
weapon for physical power and sense of superiority.
COOPERATIVE DAIRYING
"These are the ancient people with moral claims and rights thousands of years old.
They were here first; they should come first in our regard."
- Verrier Elwin
(cont. from 1st
page)
The Naxals assert to be the groups, waging violent and armed
struggles on behalf of landless laborers and tribal people against
landlords and establishment i.e. government and its executive wings.
They proclaim that they are fighting oppression and exploitation to
create a classless society. They further claim to represent the most
oppressed people, who are often left untouched by India's
development and are, invariably, Adivasis, Dalits, and the poorest of
the poor, who work as landless labourers for a pittance, often below
India's mandated minimum wages. Their opponents i.e. we, the
civilized societies and government say that the
Naxalites are miscreants, criminals, terrorists oppressing people in
the name of a class war. Communist Party of India (Marxist-
Leninist) -CPI (ML), People’s War Group-PWG, Maoist Communist
Centre-MCC are main groups among Naxals whose notorious leaders
are Charu Mazumdar, Sabyasachi Panda, Kishenji etc.
The Naxalites operate mostly in the rural and
Adivasi areas, often out of the continuous jungles in central and
eastern India regions. Their operations are most widespread in
Jharkhand, Chhattisgarh, Madhya Pradesh, eastern Maharashtra , the
Telengana, northwestern region of Andhra Pradesh, and western
Orissa which are all inland areas, away from the coastline and
where tribals predominantly inhabit.
1.2 -Tribals-
The noted anthropologist, Verrier Elwin, who lived among
the tribals and was appointed tribal advisor to NEFA by Jawaharlal
Nehru, regarded the tribals as the original inhabitants of India, and
said "These are the ancient people with moral claims and rights
thousands of years old. They were here first; they should come first in
our regard."
The basic economic activities of tribals may be classified under
following needs
(a) Food gathering including hunting & fishing
(b) Pastoral- dairying, goat rearing
(c) Shifting hill cultivation
(d) Cultivation
(e) Handicrafts
(f) Trade & Commerce
(g) Laborer – work including agricultural & industrial
labor.

“As per laws, tribals are permitted with grazing rights inside
forest areas for their animals. They live in clusters of
hamlets adjoining forests. In many areas, they do shifting
cultivation by burning down forest.”
Dairy farmers’ daily life spreads from dawn to late evening
with multiple-time feeding to animals, milking at least
twice daily for maximizing yield of milk, cleaning and
washing of shed and animals, harvesting and sourcing
green or dry fodder and concentrate feed, going to nearby
society to pour milk and to collect money value of milk
supplied. Thus it is highly engrossed and involved activity.
Strong affinity to animals translates to similar compassion
for fellow human beings. Thus tendency to violence among
some tribal youth, embroiled in Naxalism, will soften.
Integrated dairying with agriculture remedies the idle time
leading to devil mind, arising out of pure seasonal
agriculture. With nutrition enhancement from daily milk
consumption out of one’s own production, health of tribal
people will be improved substantially. Further liquid
money paid to tribal farmer for his milk poured will
enhance his purchasing power for his various necessities of
clothing, dwelling, conveyance, upbringing of children etc.
For landless tribals, dairy animals will be good asset to use
for any contingency. Frequent visit to tribal households by
veterinary doctors or Para-vets for artificial insemination,
treatment of any diseases of animals etc will improve
outside world contact and exposure of tribal people living
in isolation. Such will also assist in intelligence collection
of any nefarious activities of Naxalism in the area..
Vagaries of nature, mostly spoilsport for rain- fed tribal
areas agriculture, get mellowed in its adverse impacts for
rural economy, by dairying. With tribal cluster hamlets,
self help group or village cooperative can be easily initiated
among them using their own way of community living.
Learning of basic elements of dairying will improve their
literacy level, as they have to know counting of money,
quantity of milk and fodder, functioning of cooperative etc.
Dairying will make nomadic tribal groups to settled down
habitat because of bonding with domestic bovine animals,
which are normally not migratory. This aspect will
conserve forest cover, which is otherwise burnt down for
shifting cultivation by nomadic tribal groups. As they will
congregate day at milk collection center for pouring their
milk, they will come in contact with outside civilization for
their motivation to come out of isolation to mainstream.
Further at this center, literacy campaign can be easily
arranged When all is well with any tribal or rural person in
terms of health, employment, economic well being, why
should he get astray towards Naxalism?
3
1.3- Dairying-
Dairying is an integral part and parcel of rural economy in India in
terms of livelihood, nutrition and inseparable link with agriculture for its
requirement of fodder and its supply of dung manure. It has
characteristics of inseparable long-term relationship among professional
dairy farmers, cows or buffaloes, supporting veterinary doctors, fodder
sources and consumers. Milk, raw product of dairying, is an essential
vegetarian animal-origin beverage in every Indian household, be it rural
or urban. Interestingly, irrespective of milking animal, milk color is
white, analogically to red colored blood of all living animal species. The
non-substitutable liquid milk is used for varied value-added products
such as Ghee, Butter, Curd, Buttermilk, Sweets, and Lassie which all are
consumed in rural households. Milk has mainly three constituents, on
average water 83%, Fat 3.5 to 9 %, Solid Non Fat 8.5 % or so. Other
nutritive constituents such as protein, calcium, vitamins etc benefit
human health.
In ancient Indus civilization, people used to rear cattle. Cattle
was prized possession and wealth of kingdoms in ancient history of
Indian subcontinent. During battle and occupation, cattle were object of
attraction to appropriate. In Lord Krishna’s Dwapara era, cow, milk and
its products are closely portrayed with His life. In India, Yak in Ladakh
cold desert region, camel in Thar hot desert region, cow, buffalo and goat
in main land and backyard farming etc are reared for milk, meant for
human consumption. Prior to Operation Flood, dairying was being
practiced in backyard of unorganized individual households.
2. - Tribals- Dairying symbiotic correlation with deterrence to
Naxalism-
Tribals are habitually and traditionally animal lovers, be it wild or
domesticated animals. They are often complimented as best conservators
of forest and wild life. They and their domestic animals live on forest –
grass, leaves, and water. Central and eastern India’s tribals are hardly
beef- eaters. They treat animals as part of their families. Many instances
are seen in tribal hamlets that they keep animals inside their own dwelling
houses to protect them from wild predators or severe night cold during
winter. As per laws, tribals are permitted with grazing rights inside forest
areas for their animals. They live in clusters of hamlets adjoining forests.
In many areas, they do shifting cultivation by burning down forest.

“Few changes in credit policy and implementation of beneficiary
schemes and pragmatism will result in dairy farmers’ delight
like that of consumer’s delight out of best quality milk.”
Non- inclusion of dairying in MNREGS, terming it as
service, is retrograde. Policy change in this is highly
essential.
Mindset of urban populace favoring pet animals such
as dog, cat etc rather than milk giving cow at home is
negative signal to rural farmers. Shouldering and sharing
responsibility for production of food items by urban
population is the call of the day now, especially for food
security with growing population and expanding
urbanization.
Non- provisioning of working capital loan in NDDB
for cattle feed manufacturing plants in sectors is another
stumbling block. Some past bad debt experience of NDDB
cannot be an excuse for future.
In national and state plan for dairying, economy of
scope needs to focus on areas having intensive cultivation,
as it is fully reliant on non-plantation agriculture, rather than
doing everything everywhere. Like special economic zones
for export promotion and special infrastructure for software
development, there is also a need for dairy hub and
conglomerate in potential ad supportive areas.
4-Conclusion-
Till date, adopted strategy of force or political
dialogue or some haphazard development schemes to
contain and eradicate Naxalism among rural and tribal areas
has not resulted in success. Rather, Naxal violence and
numerical strength of Naxals have grown out of control,
spreading havoc in many states.
Thus it is highly imperative for policy planners and
implementers for intensive and aggressive promotion and
propagation of dairying among poor tribal inhabitants of
Naxal infested areas to tackle and eradicate menaces of
Naxalism in such non-violent method without any armed
combing operation.
Few changes in credit policy and implementation of
beneficiary schemes and pragmatism will result in dairy
farmers’ delight like that of consumer’s delight out of best
quality milk.
3. Unresolved burning issues of dairy sector-
Dairying, being allied sector to agriculture, faces apartheid in interest
rate of 11-13 % vis-à-vis 9% of crop loan. At present housing loan up
to Rs 50 lakh has only 8 % interest, which is fully enjoyed by urban
rich people. Thus it is serious discrimination against dairy farmers.
NABARD’s venture capital fund is untouchable for animal
purchase in Operation Flood areas, resulting in serious distortion.
There is false presumption that Operation Flood areas do not need
further investment in large manner. In contrary, many Operation
|Flood areas have rather stagnated without further growth in spite of
potential and worth.
Non-enforcement of mandatory periodical election in apex dairy
cooperatives in many states is serious violation of law and philosophy.
Like Local Self Government panchayat elections, dairy cooperative
elections must also be incorporated in Constitutional provisions, which
are inviolable.
Stricter pollution control norms by panchayats in some urbanized
states are harassment to dairy farmers. Thus there is a need to amend
such rules because cow dung, urine and fodder leftover waste are fully
biodegradable.
Liberal export policy for oil cakes, molasses and maize is
escalating cost of cattle feed. Export promotion should not lead to
domestic starvation.
Bank’s non -pragmatic gap of 6 months between 2 animal
purchase loans is against scale economy. This 6 months gap is devised
by bank for ensuring repayment of first loan before availing second
one. There is serious fallacy in bank’s mind that bovine animal
purchased from another farmer by borrower will be in lactating. Which
farmer will sell its own income-generating lactating animal to another
person, in normal circumstances?
Government’s scheme of gifting crossbred dairy animal to BPL
and distressed farmer, without full cattle feed support, turns out to be
liability as white elephant as happened in Vidarbha area. Hence such
beneficiary schemes must be comprehensive with feed and fodder.

The evolution of the organized futures market in India
commenced in 1875 with the setting up of the Bombay Cotton
Trade Association Ltd. Following widespread discontent among
leading cotton mill owners and merchants over the functioning
of the Bombay Cotton Trade Association, a separate association,
Bombay Cotton Exchange Ltd., was constituted in 1983.
 Futures trading in oilseeds originated with the setting up
of the Gujarati Vyapari Mandali in 1900, which carried
out futures trading in ground nuts, castor seeds and
cotton. The Calcutta Hessian Exchange Ltd. and the
East India Jute Association Ltd. were set up in 1919 and
1927 respectively for futures trade in raw jute.
 Futures markets in Bullion began in Mumbai in 1920,
and later, similar markets were established in Rajkot,
Jaipur, Jamnagar, Kanpur, Delhi and Calcutta. In due
course, several other exchanges were established in the
country, facilitating trade in diverse commodities such
as pepper, turmeric, potato, sugar and jaggery.
 The futures trade in spices was first organised by the
India Pepper and Spices Trade Association (IPSTA) in
Cochin in 1957. However, in order to monitor the price
movements of several agricultural and essential
commodities, futures trade was completely banned by
the government in 1966.
 Subsequent to the ban of futures trade, many traders
resorted to unofficial and informal trade in futures.
However, in India‘s liberalization epoch as per the June
1980 Khusro committee‘s recommendations, the
government reintroduced futures on selected
commodities, including cotton, jute, potatoes, etc.
REGULATING BODY
The commodity futures traded in commodity exchanges are
regulated by the Government under the Forward Contracts
Regulations Act, 1952 and the Rules framed there under. The
regulator for the commodities trading is the Forward Markets
Commission, situated at Mumbai, which comes under the
Ministry of Consumer Affairs Food and Public Distribution.
Forward Markets Commission (FMC)
It is statutory institution set up in 1953 under Forward
Contracts (Regulation) Act, 1952. Commission consists of
minimum two and maximum four members appointed by Central
Govt. Out of these members there is one nominated chairman.
All the exchanges have been set up under overall control of
Forward Market Commission (FMC) of Government of India.
MCX (Multi Commodity Exchange)
 Multi Commodity Exchange of India Ltd (MCX) is a
state-of-the-art electronic commodity futures exchange.
The demutualised Exchange has permanent recognition
from the Government of India to facilitate online
trading, and clearing and settlement operations for
commodity futures across the country.
MCX offers more than 40 commodities across various
segments such as bullion, ferrous and non-ferrous
metals, energy, and a number of Agri-commodities on
its platform. The Exchange introduces standardized
commodity futures contracts on its platform.
“Commodity Market”
By Mr. Abhishek Sinha
S M, Staragri Warehousing &
Collateral Management Ltd

 MCX has been certified to three ISO standards
including ISO 9001:2008 Quality Management System
standard, ISO 14001:2004 Environmental Management
System standard and ISO/IEC 27001:2005 Information
Security Management System standard.
National Commodity and Derivatives
Exchange
 National Commodity & Derivatives Exchange Limited
(NCDEX) is a professionally managed on-line multi
commodity exchange. The shareholders of NCDEX
comprises of large national level institutions, large
public sector bank and companies.
 NCDEX is a public limited company incorporated on
April 23, 2003 under the Companies Act, 1956. It
obtained its Certificate for Commencement of Business
on May 9, 2003. It commenced its operations on
December 15, 2003.
 NCDEX is regulated by Forward Markets Commission.
NCDEX is subjected to various laws of the land like the
Forward Contracts (Regulation) Act, Companies Act,
Stamp Act, Contract Act and various other legislations.
 NCDEX headquarters are located in Mumbai and offers
facilities to its members from the centers located
throughout India.
 The Exchange, as on February 9, 2012 offered contracts
in 34 commodities - comprising 23 agricultural
commodities, 6 precious metals, 2 energy, 1 polymer
and 2 other metals. The top 5 commodities, in terms of
volume traded at the Exchange, were Soya oil, Gaur
Seed, Chana, RM seed and Guar gum.
 NCDEX the country's second largest commodity
derivatives exchange, has been listing contracts since
2003.
 The NCDEX ranked number 32nd in 2010 in the
Futures Industry Association's global list of top 53
derivatives exchanges measured by volume, rising
34.16% on 2009 volume
 The exchange posted volume of 40.1 million contracts
in 2010, up from 29.9 million in 2009, according to FIA
data published in April 2011.
Indian Commodity Markets
 Commodity Markets have their presence in country for
over 120 yrs.
 Trade in commodities has been Unorganized in
Regional markets & Local Mandis.
 Trading in Futures Contracts has been permitted in over
120 commodities.
 Physical commodity market size in India is estimated to
be around 25 lakh core per annum.
 Major commodities traded in India are - Gold, Silver,
Crude Oil, Copper, Guar, Chana, Spices, among the
few.
Evolution of Commodity markets in India
 Ban in forward trading from mid-sixties
 Prior to ban
 Thriving commodity exchanges for cotton, gold, edible
oils etc.
 more than 20 regional commodity specific exchanges
Recent developments
 Ban completely lifted in 2003
 Emergence of national level de-mutualised online
multi-commodity exchanges
 3 National and 21 regional exchanges
 Trade in 60 commodities compared with just 8 in 2000
 Growth exceeds 7-8 times in FY09 over FY10

Benefits of commodity Future Markets
Price Discovery - Based on inputs regarding specific
market information, the demand and supply
equilibrium, weather forecasts, expert views and
comments, inflation rates, Government policies, market
dynamics, hopes and fears, buyers and sellers conduct
trading at futures exchanges. This transforms in to
continuous price discovery mechanism.
 Price Risk Management - Hedging is the most
common method of price risk management. It is
strategy of offering price risk that is inherent in spot
market by taking an equal but opposite position in the
futures market. Futures markets are used as a mode by
hedgers to protect their business from adverse price
change. This could dent the profitability of their
business. Hedging benefits who are involved in trading
of commodities like farmers, processors, merchandisers,
manufacturers, exporters, importers etc.
 Import- Export competitiveness - The exporters can
hedge their price risk and improve their competitiveness
by making use of futures market. A majority of traders
which are involved in physical trade internationally
intend to buy forwards. The purchases made from the
physical market might expose them to the risk of price
risk resulting to losses.
 Benefits for farmers/Agriculturalists - Price
instability has a direct bearing on farmers in the absence
of futures market. There would be no need to have large
reserves to cover against unfavorable price fluctuations.
This would reduce the risk premiums associated with
the marketing or processing margins enabling more
returns on produce. Storing more and being more active
in the markets. The price information accessible to the
farmers determines the extent to which
traders/processors increase price to them. Since one of
the objectives of futures exchange is to make available
these prices as far as possible, it is very likely to benefit
the farmers.
GROWTH IN THE COMMODITY MARKET
AS COMPARED TO THE EQUITY
MARKET
 In fact, the size of the commodities markets in India is
also quite significant. Of the country's GDP of Rs
13,20,730 crore (Rs 13,207.3 billion), commodities
related (and dependent) industries constitute about 58
per cent.
 Currently, the various commodities across the country
clock an annual turnover of Rs 1,40,000 crore (Rs 1,400
billion). With the introduction of futures trading, the
sizes of the commodities market grow many folds here
on.
 Currently, the average monthly volume on the Indian
commodity exchanges is Rs.6 trillion. MCX leads the
industry, followed by NCDEX.
 MCX is not only number one in India but has achieved
some global milestones too. It was the largest exchange
in silver (in terms of number of futures contracts traded
in 2010), number two in gold, copper and natural gas
and number three in crude oil. When we say India is the
largest exchange in silver, it is a great achievement for
the Multi Commodity Exchange.
 Talking about agricultural commodities, the Indian
commodities market has futures contracts of
commodities such as black pepper, cumin seed, mentha
oil and many more which are internationally traded but
only listed in India; internationally traders tend to
consider these as benchmark rates.
 Foreign institutional investors, domestic institutions,
banks and insurance companies are not allowed to trade
on the Indian commodity bourses and a majority of
volumes come from jobbers, arbitrageurs, retail traders
and small scale enterprises and corporate (for hedging).
Even portfolio management services are not permitted.
 We expect the Indian commodity futures market to
reach at least 15x-20x by FY15. With the contribution
of Indian physical commodities to GDP being pegged at
45%, even if the commodity futures market trades at
15x-20x, we can imagine the kind of volumes our
exchanges will generate.
List of Traded Commodity
1. Agricultural Products
Corn, Oats, Rough Rice, Soybeans, Rapeseed, Soybean
Meal, Soybean Oil, Wheat, Cocoa, Coffee, Cotton
No.2, Sugar No.11,Sugar No.14.
2. Livestock and Meat
Lean Hogs, Frozen Pork Bellies, Live Cattle, Feeder
Cattle.
3. Energy
WTI Crude Oil, Brent Crude, Ethanol, Natural Gas,
Heating Oil, Gulf Coast Gasoline, RBOB Gasoline,
Propane, Uranium.
4. Precious Metal
Gold, Platinum, Palladium, Silver.
5. Industrial Metals
Copper, Lead, Zinc, Tin, Aluminum, Aluminum alloy,
Nickel, Aluminum alloy, Recycled steel

NACL's Quality, Environment, Safety and Health Policy
NACL has been assessed and certified as meeting the requirements of:
ISO 9001:2008 ISO 14001:2004 OHSAS 18001:2007
We operate one of the most modern and comprehensive Technical
Agrochemical manufacturing plants, situated in Srikakulam district of Andhra Pradesh, India.
The following technical grade products are manufactured by us:-
Insecticides Herbicides Fungicides
Profenophos Pretilachlor Propiconazole
Acephate Tricyclazole
Dichlorovos . Myclobutanil.
ISO 9001:2008 ISO 14001:2004 OHSAS 18001:2007
Nagarjuna Agrichem Limited (NACL)
NACL was established in 1994 for producing Monocrotophos
Technical. NACL has since grown substantially and now
manufactures a comprehensive range of pesticide technicals,
formulations and custom manufactured fine chemicals.
All the manufactured products conform to international quality
standards and specifications. We have adequate capacities, state-of-
the-art infrastructure, skilled experienced manpower and technical
absorption capabilities. In fact, Custom Synthesis and
manufacturing are one of NACL's inherent capabilities. The
production lines are designed for a quick change over. We also
have a Custom Synthesis and Toll Manufacturing Division, which
caters to the requirements of reputed overseas customers.
NACL has one of the largest Dealer Network spread across
India, with marketing and sales offices in addition to an
extensive Warehousing & Logistics Infrastructure to handle
operations in 20 Indian States.
NACL has tie-ups with large Indian Agrochemical Majors
and MNC’s for the domestic and export markets. The Current
Gross Annual Sales of the Organization is apprx. US $ 138
million.
Corporate Visit

NACL formulates its formulations in a modern Formulation Plant situated in the East Godavari District of Andhra Pradesh. This
location is situated in the scenic rice growing area on India's East Coast. This Unit is one of the few to have in a single location,
integrated multi-line facilities capable of producing a variety of pesticide formulations such as liquids, wettable powders and
granules simultaneously. This unit has the formulation technology to produce dry flowables and water based emulsions.
The category wise annual installed capacities are:
 Technicals : 9,500 MT
 Formulations (Liquids / Wettables /
Granules)
: 38,000 KL/MT
NACL is also setting up a New Corporate R&D Centre near Hyderabad. In this Corporate R&D Centre, in addition to in-house
R&D projects, Contract Research will also be undertaken.
NACL has an impressive range of branded formulations in the categories of Insecticides, Fungicides and Herbicides. In addition to
catering to the entire Indian subcontinent, we export both Technical and Formulation grade pesticides to some countries in Europe,
Asia including the Middle East, Japan, USA, Australia and Africa
Quality
Quality at Nagarjuna Agrichem is a result of conscientious and consistent efforts. Naturally, each of its products ranks with the
best in the world. The most stringent quality control tests mark every stage of manufacturing - from raw material sourcing to
processing and packaging. Along with in-house norms and standards in eco-friendly operations and safe handling, we have the
capabilities to standardize products and packaging to meet the prevailing regulatory demands of any country of the World. This
primary focus on quality is the key to the wide acceptance for Nagarjuna products in many countries across the Globe.
The Quality management facilities are equipped with modern analytical equipment such as GC-Mass, LC- Mass, GLC, HPLC, UV
Spectrophotometer and etc.
The Nagarjuna Agrichem product profile includes those tested and certified by best GLP Certified Independent laboratories in
Europe & U.S.A. All the products conform to National and International Specifications.
Manufacturing and R & D
NACL has adequate capacities, state-of-the-art infrastructure, and skilled experienced manpower and technology absorption
capabilities. The production lines are designed for quick change over to also undertake Toll manufacturing adhering to the highest
international standards and specifications.
The Technical Grade Pesticides manufactured by us are:

Insecticides Herbicides Fungicides
Profenophos Pretilachlor Propiconazole
Acephate Tricyclozole
Dichlorovos . Myclobutanil
The process Development Skills of NACL are comparable to the Best Indian Companies. It is our belief that the R & D / Process
Development Department of NACL is the second largest of any Indian Agrochemical Company in terms of size and scope of
operation.
Research and Development plays a critical role in NACL. The R&D division carries out work on process development of technical
and intermediates, custom synthesis, process improvement, application research and basic research.
NACL is involved in contract manufacturing for leading multinational companies and technology transfer is done by the R&D
department. The department in equipped to carry out all types of reactions. There is a fully fledged pilot plant to scale up process.
The Research and development activity is supported by analytical laboratory which has sophisticated state of the art equipments
including LC-MS and GC-MS. The R&D laboratory of NACL is recognized by the Department of Science & Technology,
Government of India.
Exports
Nagarjuna's growing global presence is reflected in its exports. Today Nagarjuna is among the few companies in India
exporting pesticide technicals and formulations to as many as 24 countries including Australia, Bangladesh, Belgium, Brazil,
Colombia, Egypt, France, Germany, Indonesia, Italy, Ivorycoast, Japan, Malaysia, Netherlands, Nigeria, Saudi Arabia,
Singapore, Sri Lanka, Switzerland, Taiwan, Tanzania, Thailand, USA and Yemen
To meet the growing demand in the international markets and improve its export business, the Group is constantly
introducing new generics and formulations. To strengthen this process, Nagarjuna has generated complete packages
of Chemistry, Toxicology, Residues and Bioefficacy data for all its manufactured techincals.
All our business actions and decisions are guided by the values that underlie this philosophy-
CONCERN, COMMITMENT, QUALITY, INTEGRITY. All the companies in Nagarjuna Group are synergised
with a unity of purpose and share a value system which lays emphasis on its relationship with its
Customers, Investors, Employees and the Community at large.
Nagarjuna Group is built on its Founder's philosophy of
"Serving Society through Industry"
Reference: http://www.nagarjunaagrichem.com

Quiz1. India is the leading producer of which of the following agricultural products?
a) Sugar
b) Jute
c) Onion
The correct answer is Sugar. According to the United Nations' Food & Agriculture Organization, India topped the list of highest sugar
producing countries, ahead of Brazil and China. India produced around 21 million tonnes of sugar last year. It ranks second in the world
in the production of jute (Bangladesh is the first), while it is the third largest producer of cotton in the world.
2. When was the Food Corporation of India set up?
a) 1947
b) 1965
c) 1973
The correct answer is 1965. The Food Corporation of India, which was set up in 1965, operates as the sole agency of the central
government for procurement, import, distribution, storage, movement and sale of food grains. It also performs other diversified
activities such as rice milling and production of nutritious processed food.
3. Which of the following is the most cultivated crop in India?
a) Wheat
b) Sugarcane
c) Rice
The correct answer is Rice. Rice was cultivated on an area of around 32.5 million hectares during the fiscal year 2002-2003. This was
actually a decrease of 17 per cent compared to the area under cultivation in the year before that. This was due to deficient rainfall and
drought conditions in the country. Even so, rice is the most cultivated crop in India. India is the world's second-largest producer of rice,
behind China.
4. Which agricultural scientist has won the Magsaysay Award?
a) K Subramanyam
b) M S Swaminathan
c) Sudhir Gupta
The correct answer is M S Swaminathan. Dr M S Swaminathan is the former Director General of International Rice Institute, Manila;
the architect of India's Green Revolution; the Director of Centre for Research on Sustainable Agriculture & Rural Development,
Chennai; and a recipient of the Magsaysay Award (1971), the Volvo Environment Prize (1999) and the Indira Gandhi Prize for Peace,
Disarmament & Development (2002).

5. In 2000, which sector was rated as the second largest employment
provider in India?
a) Agriculture
b) Software services
c) Textiles
The correct answer is Textiles. India's textiles industry is the single largest foreign
exchange earner-- accounting for around 20 per cent of India's industrial output
and over 30 per cent of India's exports. About 38 million people are employed in
the industry, making it the second largest employment provider next only to
agriculture. In 2000, India contributed 15 per cent to the world production of
cotton textiles, against 12 per cent a decade ago.
6. In the last census of 1991, what was the estimated number of
Indians living below the poverty line?
332 million
220 millon
450 million
The correct answer is 332 million. Estimates in the late 1970s put the number of
people who lived in poverty at 300 million, or nearly 50 per cent of the population
at the time. Poverty was reduced during the 1980s, and in 1989 it was estimated
that about 26 per cent of the population, or 220 million people, lived below the
poverty line. Slower economic growth and higher inflation in 1990 and 1991
reversed this trend. In 1991, it was estimated that 332 million people, or 38 per
cent of the population, lived below the poverty line.
7. In 1991, when India's GDP growth rate fell drastically, inflation
peaked to what percentage?
11 %
22 %
17 %
The correct answer is 17%. The balance of payments crisis of 1990 and
subsequent policy changes led to a temporary decline in the GDP growth rate,
which fell from 6.9 per cent in 1989 to 4.9 per cent in 1990 to 1.1 per cent in FY
1991. Inflation then peaked at 17 per cent in FY 1991 and fell to 9.5 per cent by
FY 1993, temporarily accelerating in between. For 2003-04, inflation is expected
to be below 4 per cent..
8. What percentage of India's GDP does the IT services industry
contribute to?
3 %
2%
1.5 %
The correct answer is 3%. The Indian IT market has grown from Rs 5,450
crores ($ 1.73 billion) in 1994-95 to Rs. 79,337 crores ($ 16.5 billion) in 2002-
03, accounting for 3 per cent of India's GDP in 2002-03. The IT industry has
created employment opportunities for over 700,000 professionals in India in
the year 2002-03. The growth in the Indian IT industry was largely driven by
exports.

Management Stories
It’s a fine sunny day in the forest and a lion is sitting
outside his cave, lying lazily in the sun. Along comes a
fox, out on a walk.
Fox: “Do you know the time, because my watch is
broken”
Lion: “Oh, I can easily fix the watch for you”
Fox: “Hmm… But it’s a very complicated mechanism, and
your big claws will only destroy it even more.”
Lion: “Oh no, give it to me, and it will be fixed”
Fox: “That’s ridiculous! Any fool knows that lazy lions
with great claws cannot fix complicated watches”
Lion: “Sure they do, give it to me and it will be fixed”
The lion disappears into his cave, and after a while he
comes back with the watch which is running perfectly.
The fox is impressed, and the lion continues to lie
lazily in the sun, looking very pleased with it.
Soon a wolf comes along and stops to watch the lazy
lion in the sun.
Wolf: “Can I come and watch TV tonight with you,
because mine is broken”
Lion: “Oh, I can easily fix your TV for you”
Wolf: "You don’t expect me to believe such rubbish, do
you? There is no way that a lazy lion with big claws can
fix a complicated TV.
Lion: “No problem. Do you want to try it?”
The lion goes into his cave, and after a while comes
back with a perfectly fixed TV. The wolf goes away
happily and amazed.
Scene: Inside the lion’s cave. In one corner are half a
dozen small and intelligent looking rabbits who are
busily doing very complicated work with very detailed
instruments. In the other corner lies a huge lion
looking very pleased with himself.
Moral: If you want to know why a manager is famous;
look at the work of his subordinates.
Management Lesson in the context of the working
world:
If you want to know why someone undeserved is
promoted; look at the work of his subordinates
10 Doctors, 5 Engineers & 1 salesman
helicopter ki rassi pe latke hue the.
Pilot- Weight jyada hai 1 Admi ko rassi chodni
padegi!
Salesman - Ye Qurbani hum denge Qki hum
salesman he!
Bajao taliya!
Sabhi Dr., Engnr taliya bajane lge.
Weight khud hi km ho gaya!
Moral of story:
1.Dr. bano ya Engnr, Guru to guru hi hota hai .
2. Sales me qurbani de te nai Lete hai
Bosses Vs. workers
When I take a long time, I am slow.
When my boss takes a long time, he is thorough.
When I don't do it, I am lazy.
When my boss doesn't do it, he's too busy.
When I do it without being told, I'm trying to be
smart.
When my boss does the same, it is initiative.
When I please my boss, it's brown-nosing.
When my boss pleases his boss, it's co-
operating.
When I do good, my boss never remembers
When I do wrong, he never forgets.
Fun Corner

Management Lessons from Mumbai Local Train
1. Entry is always tough, d gate itself is crowded. But once we
enter inside, people adjust & we feel comfortable. If our strategy
is perfect, even we can get a seat in crowd.
2. We need to follow our own strategy to get in or out. In case
we try to copy others strategy, we r stuck. We will be forced to
go to next station & come back. A loss of time, money,
resources & so on....
3.Our acceptance level increases day by day. Rather than
abusing, we start enjoying the same crowd in due course.
4. Once in, no of sharing & caring hands come out for help,
making the journey more enjoyable.
5. Those who don't have courage, wait for the next train, & all
inside the earlier train laughs at them.
Train changes with opportunity, co passengers
change with competition, but we remain the
same....
Funny Business

From Books
The Seven Habits of Highly Effective People
……When Sir Winston Churchill was called to head
up the war effort for Great Britain, he remarked that
all his life had prepared him for this hour. In a
similar sense, the exercise of all of the other habits
prepares us for the habit of synergy.
When properly understood, synergy is the highest
activity in all life -- the true test and manifestation of
all the other habits put together.
The highest forms of synergy focus the four unique
human endowments, the motive of win-win, and the
skills of empathic communication on the toughest
challenges we face in life. What results is almost
miraculous. We create new alternatives -- something
that wasn't there before.
Synergy is the essence of Principle-Centered
Leadership. It is the essence of principle-centered
parenting. It catalyzes, unifies, and unleashes the
greatest powers within people. All the habits we
have covered prepare us to create the miracle of
synergy.
What is synergy? Simply defined, it means that the
whole is greater than the sum of its parts. It means
that the relationship which the parts have to each
other is a part in and of itself. It is not only apart, but
the most catalytic, the most empowering, the most
unifying, and the most exciting part.

The creative process is also the most terrifying part
because you don't know exactly what's going to happen or
where it is going to lead. You don't know what new
dangers and challenges you'll find. It takes an enormous
amount of internal security to begin with the spirit of
adventure, the spirit of discovery, the spirit of creativity.
Without doubt, you have to leave the comfort zone of base
camp and confront an entirely new and unknown
wilderness.
You become a trailblazer, a pathfinder. You open new
possibilities, new territories, new continents, so that others
can follow.
Synergy is everywhere in nature. If you plant two plants
close together, the roots commingle and improve the
quality of the soil so that both plants will grow better than
if they were separated. If you put two pieces of wood
together, they will hold much more than the total of the
weight held by each separately. The whole is greater than
the sum of its parts. One plus one equals three or more.
The challenge is to apply the principles of creative
cooperation, which we learn from nature, in our social
interactions. Family life provides many opportunities to
observe synergy and to practice it.
The very way that man and a woman bring a child into
the world is synergistic. The essence of synergy is to value
differences -- to respect them, to build on strengths, to
compensate for weaknesses.
We obviously value the physical differences between men
and women, husbands and wives. But what about the
social, mental, and emotional differences? Could these
differences not also be sources of creating new exciting
forms of life -- creating an environment that is truly
fulfilling for each person, that nurtures the self-esteem
and self-worth to each, that creates opportunities for each
to mature into independence and then gradually into
interdependence? Could synergy not create a new script
for the next generation -- one that is more geared to
service and contribution, and is less protective, less
adversarial, less selfish; one that is more open, more
giving, and is less defensive, protective, and political; one
that is more loving, more caring, and is less possessive
and judgmental?
Stephen R. Covey

REDOLENCE OF RELIGION
Religion is something really good;
Under one, they live in brotherhood.
But when people become of attitude narrow,
There is nothing but sorrow.
Then comes a small scale war
Which is neither beneficial for
Either the winner or Loser.
Both of them have actually lost.
For this there is only one solution,
Which is to live in peace
And create atmosphere of bliss.
By CA Pratik Neve
Faculty, VAMNICOM

Branding is an easier word to pronounce, but too tough to
act. Think with the prospective of a manager not as a graduate &
move ahead. The best part is you are doing something, not just
planning.
My salute!
Best Regards,
Sanjeev Shahi
Mumbai
Sonallkumar Jirapure
Good initiative...keep rolling
Anurag Shrivastava
congrates for this ..
Rahul Pagar
Fantastic… good job,
waiting for next issue
Mukul Bhartiya
It is good. More important is to keep
the effort up and going. Nothing can
be perfect in just one go.
Ragini Jha
Hi,
This is a very good initiative
I would surely give my inputs.
Regards and Best wishes
Amit Talekar
Commendable thought and
writing…..
waiting eagerly for next issue...
Ajay Kumar Giri
Good job done.............
Akshay Halbe
Cool.... appreciate your
creative thinking dude....
Abhishek Sinha
great work
Rajib Roy
good effort
YOURWORDS
Pratik Mundhe
gud work ..............keep going
Rahul More
good one
Sanjay Thakur
I am glad to see this initiative and really
appreciate you guys as I know it’s not easy to
put through all thoughts at one piece of paper,
leave alone writing and compiling a
magazine.So, many congratulations to current
VAM'batch, alumni and contributors.
Rajneesh Pandey, IFFCO, Lucknow
Excellent efforts.
I will also add something from my side.
Enlighten: Ultimate Facewash !!!!
http://www.youtube.com/watch?v=vIN80NeulNU
VAMNICOM Agribusiness
http://www.youtube.com/watch?v=AaTtTwo_XQc
Click Here To

The Godfather By Prashant Kaw blog.hubsopt.com
1. Keep Your Friends Close, Your
Influencers Closer
In our social media life it is important to
keep in touch with your friends, but make
sure you are engaging your influencers.
Identify experts and analysts in your
industry and build relationships with them.
However, as Don Corleone justly scoffs
Amerigo Bonasera on the day of his
daughter's wedding to "Ask with Respect"
and "Come to me with friendship," your
motive for engaging the experts should be
to build a lifelong friendship!
2. Give Your Audience Offers They Can't
Refuse
I couldn't say it any better. Great offers
reduce barriers to generating leads. How
could anyone refuse to read an eBook that
has valuable content or attend a thought
The Godfather is an iconic film and novel that everyone remembers
and quotes. There are so many remarkable lessons from Michael
Corleone's hero's journey to his succession of leadership from his
ailing father during a tumultuous gang war. Here are 5 valuable
marketing lessons from the Corleone family that will help you take on
the Tattaglias, Barzinis and So llozzos that you face!
leadership webinar that keeps them on top of
their game? Especially, if it's free! When it
comes to social media and lead generation,
great content makes the best offer. Share it
so your audience will spread it!
3. Don't Hesitate to Go to the Mattresses
If you don't stand for something, you will fall
for anything. Thought leadership is the key
to influencing your audience. It will help you
to reason with them. Take your strong
convictions to the mattresses and build up
expertise in your industry. A good example at
Hub Spot is how we have taken on traditional
marketing with our stance on inbound
marketing.
4. Its All Personal, Every Bit of Business
Throughout most of the book (and movie),
you are led to believe that every action, every
move, is all business.
“My father taught me many things …
Keep your friends close, but your enemies closer.”
Al Pacino The Godfather.
However at the very end, Michael
Corleone reveals with this outburst that he
alone understood his father the best:
"Tom, don't let anyone kid you. It's all
personal, every bit of business. Every piece
of sh*t every man has to eat every day of
his life is personal. They call it business.
OK. But it's personal as hell."
Businesses are comprised of people, and
using social media is a great way to bring
that personal touch to your business and
marketing. It also gives your brand
personality!
5. If You Can't Change, You'll be
sleeping With the Fishes
There is a huge shift in how marketing is
working and being done on the web. Just as
Michael Corleone realized he needed to
move from New York to Las Vegas to
protect his business interests, you need to
adjust with the times or find yourself
obsolete. If not, your business could end up
like Luca Brassi sleeping with the fishes!
So in summary: Learn about inbound
marketing and use social media to build up
thought leadership. Share remarkable
content and engage your influencers. Go
to the mattresses with your thoughts, ideas
and convictions. But when it’s over, drop
your guns and take the canola’s. In the
end, it's always personal!
5 Marketing Lessons from

Rural ConsumerismBy Ankita Rawat
PGDM-ABM 2012-14 ,VAMNICOM“To live fully, we must learn to use things and love people,
and not love things and use people.”
― John Powell
An understanding of consumer
behaviour is essential in formulating the
marketing strategies. However,
information about rural consumers is
limited and hazy due to lack of right
competence, partial approach and
limited knowledge and bias of the
corporate managers.
While the top management’s
commitment to understand the rural
markets exists, the competence
necessary for interacting and
comprehending rural attitudes and
behaviour is lacking at the lower, field
staff level. The lower levels who look
after implementation have exposure
mostly to urban life and consumers. A
deeper understanding of the rural milieu
is needed for which people with proper
exposure are required.
The research findings of
marketing research and advertising
agencies present different pictures of
rural markets. Even after almost two
decades, from the time when it first
Marketers have to find the income sensitivity of the goods and services they offer and
make decisions like:
Today, sachets of shampoos, toothpastes, hair oils, skin creams, cough syrup and
several other products tap the vast rural market. The small unit purchasing is convenient to
rurals who are mostly daily wage earners.
came into vogue, understanding on
rural marketing remains superficial at
best. The argument, which through
not always articulated is, after all,
rural people are also people like urban
and world have the same needs,
desires and aspirations
The characteristics of the
buyer that affect the buying process
include:
Age and life-cycle stage Occupation
Economic situation Life-style
Personality and self concept
Psychological factors
(A) Buying is influenced by the age
and life-cycle stages of people.
(B) Evidently, the goods and services
bought by a person are influenced by
the occupation of the individual.
(C) The purchasing power of an
individual is the prime consideration
for markets. If the disposable income
of an individual is high, obviously, he
or she can buy a number of popular
goods or a few expensive goods.
Enlighten Freedom of Thoughts

(D) Lifestyle is a person’s
pattern of living. The pattern
of living is determined by the
activities, interests and
opinions (AIO) of people.
Activities - work, hobbies,
shopping, social events, etc.
Interests - food, fashion,
family, recreation.
Opinions - about self, society,
government, business, etc.
(E) Personality refers to the
unique psychological
characteristics that lead to
relatively consistent and
lasting responses to one’s
own environment. To relate
personality to products people
purchase, there are two
aspects to be considered
situation and person.
(F) The tree psychological
factors, which help describe
what goes on in the minds of
consumers, have influence on
his decision-making.
Perception Cognition and
Motivation : It is the process
by which people select,
organize and interpret
information to form
meaningful picture of the
object. Three perceptual
processes, for example,
selective attention, selective
distortion and selective
retention of audience make
effective communication a
challenge to markets.
Selective attention - People
pay attention to things that
they consider of value.
Selective distortion - People
interpret information to support
what they already believe.
Selective retention - People
remember what, in their view, is
supportive to their beliefs and
attitudes.
The information
gathering and processing styles
of rural are simple since their
sources and skills are limited.
For them, learning is possible
when the subject is simplifies;
the presentation is made in their
dialect and in a lucid style. With
the aid of pictures and diagrams
the audience is slowly involved
in experiential learning through
demonstrations.
Motivation is a process
of creating motives. A motive is
defined as an inner urge that
moves or prompts an action”.
Motivation to purchase a product
becomes positive when the
product corresponds to a need or
a motive, which is to be
satisfied. The motivation
becomes stronger when such
satisfaction is very important to
the consumer.
The BDP follows a logical
sequence of five steps
 Need Recognition
 Information search
 Evaluation of
alternatives
 Purchase
 Decision
Post-purchase behavior
(A) When the buyer recognizes a
gap between his desired state
and the actual stat, buying
process starts. Such recognition
maybe caused by stimuli either
internal (self) or external (by
environment or marketer). At
this stage, marketer should help
consumers identify their current
and future problems and felt or
latent needs. To do this,
marketers have to research on
consumer problems and needs.
aware of the brands, which
meet initial, buying criteria,
will be considered for further
evaluation. They make up
the consideration set.
Through application of final
criteria, the consumer evolves
his choice set. All the brands
in this set are acceptable to
the consumer. However, the
final choice will be made in
favour of one brand. The
choice is dependent upon
factors influencing the mind
of consumer at this final
state.
(E) A buyer feels satisfied
when the perceived product
performance is close to
his/her expectations, if it
exceeds expectation, the
customer is delighted. If it
falls short of expectations,
the customer is disappointed.
Consumer is the
basic foundation of every
business. What consumer
sees, thinks prefers and buys
is of great importance to
marketers to fine tune their
marketing offers and achieve
high level of consumer
acceptance and satisfaction.
The emergence of rural
market as a viable
proposition has sparked a
new interest among
marketers to explore and
understand them.
(B) Generally, consumers try
to find information
pertaining to their want
satisfying products to make
the right choices. The
amount of information
required depends upon:
Type of the product
convenience, shopping or
specialty good. Nature of the
product complex, high-tech
or simple and easy to
distinguish Availability of
sources - the consumer may
obtain information from one
or more of the following
sources Personal, family,
friends, neighbors
Commercial advertising, sale
people, displays Public, TV,
radio, internet and print
media Experiential handling,
examining, using the
product.
Search expands with the
availability of time.
Marketers have to take into
cognizance this aspect and
design offers to induce
immediate buying. Keeping
in mind the information
needs of consumers,
marketers should design
communication programmes
to reach the consumers and
provide adequate and
relevant information.
(C) The evaluation process
may be done more carefully
and logically in some cases,
for example, consumer
durables. In case of
convenience goods, which
are purchased for one-shot
consumption, the evaluation
may be very less.
Occasionally, it maybe
impulse buying too.
(D) All the existing brands
in the market make a total
set. through information
search consumer will
become aware of some
brands in the total set
Awareness set consists for
brands which the consumer

Editors
Narendra Pawar (Graphics, Editing)
Suryakant Verma (Editing)
..Special Thanks….
Mr. Sanjeeb Patjoshi IPS IG,
Director, VAMNICOM & CICTAB
(Co-operative Dairying)
Dr. V. S. Kaveri
(Farm Credit –Some Suggestions)
CA Pratik Neve
(Redolence of Religion)
Mr. Sanjeev Shahi
Mr. Abhishek Sinha
(Alumni Corner)
(This magazine is published by students and is not commercially produced. All queries and views are
requested towards editor and producers.)
VAIKUNTH MEHTA NATIONAL INSTITUTE OF COOPERATIVE MANAGEMENT
SHIVAJINAGAR, PUNE- 411007.
ENLIGHTEN freedom of thoughts

Vamnicom enlighten jul aug 13 edition

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