rural marketing in the north east

8/8/2019 Rural Marketing in the North East

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Group : BBA(A)

Hitesh Bodani 08D1518

Jerin John Jose 08D1520

Kevin 08D1521


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INTRODUCTIONy The economy of the northeastern region is

predominantly agriculture comprising agriculture and

horticultural crops.y The rural marketing is largely unorganized in the

region and dominated by the private traders.


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Market linkages for rural products3ways in which they can be connected to the markets:

On their own

State can do it for them

Linkages through companies or industries


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Scope & opportunities:y The mutual benefits of the rural entrepreneurs and

industries primary beneficiaries.

y Itwill benefit farmers and rural communities as well asshareholders.

y Brings about transparency, increased access toinformation, and rural transformation.

y The creation of opportunities for the ruralentrepreneurs for product differentiation andinnovation by offering them choices.


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Challenges :y For decades, the entrepreneurs associated with very

conventional/traditional knowledge of business,

humiliation with government, so they are likely to lookat these initiatives with skepticism.

y On the other hand, the products of the existing andpopular brand also stand as threat to the rural

products.


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Rural Marketing Strategies

y Client and Location specific

yJoint or co-operative promotion.

y

Bundling of inputsy Management of demand

y Developmental

y Media

y Unique Selling Propositions (USP)y Extension

y Ethics in Business

y Partnership for sustainability


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Manipury Marketing of agricultural produce in Manipur has not

been systematically organized.

y

The lion's share of the consumers' rupee goes to thepockets of innumerable middlemen working inbetween the producer and the ultimate consumer.

y The agriculturists of Manipur are generally the personsof small means.

y Their holdings are small and scattered. As such, theyhave got very little quantity of agricultural produceavailable individually as a marketable surplus to bedisposed off.


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y Under the prevailing practice in the state farm produce iscollected from the producers in the interior villages and arebrought to a central point, which is the assembling centre,

by the womenfolk.y Sometimes agriculturists sell their produce to the itinerant

merchants.

y From the village markets it is procured by the itinerantmerchants and agents of wholesalers belonging to townssuch as lrnphal, Singjarnei, Thoubal, Kakehing, Bishenpur,Moirang, Churanchandpur and the like.

y The transport that gives place utility to a farm product isone of the main problems in Manipur.


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y Consequently, the farmers have to sell theircommodities at a lower and uneconomical price to the

itinerant traders at their farm itself.y Regarding market charges, it seems that the prevailing

system in Manipur is different than those prevalent inthe unregulated markets in other parts of the country.

y

In Manipur, the sellers have the advantage of notpaying any charges like Gosala (CattleCess),Dharmoda (Charity), Dalaii (Commission).


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Meghalayay Agriculture is the main occupation in Meghalaya in spite of

the fact that only about 10 per cent of the total land isavailable for cultivation in the hilly terrain of the State.

y About 82 per cent of the total population of the State live inrural areas and mainly depend on agriculture for theirlivelihood.

y Paddy is the main food-crop grown in the state. Besides

maize, wheat, millets and pulses, potato, jute and rnesta,cotton, mustard, ginger, turmeric, areca nut and betel leafare some of the important cash crops produced in the state.


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yAmong the horticultural crops, banana, pineapple,citrus fruits mainly oranges are grown in abundance in

medium and lower altitude regions and fruits likeplum, pears and peaches are grown in the high altitudetemperate region.

y The state has a deficit in the production of food grains.


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Tripuray The Tripura Agricultural Produce Markets (Amendment)

Act, 1983 has been enacted for the establishment of theTripura Agricultural Produce Market Board and

subsequent amendment was proposed for the constitutionof Market Committee of Regulated Markets to increase thenumber of members.

y The Tripura Agricultural Produce Markets(Administration) rules, 1985 was framed to allocate powersto the Marketing Board and Committees.

y In the regulated markets paddy and banana are notified astransaction able commodities. The paddy is admissible inthe regulated markets in husked or raw form fortransactions. The transactions are made by openregulations between the buyers and the sellers.


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y Some of the markets have been provided withminimum required amenities while the remaining

markets have yet to be covered.y The minimum basic facilities to be provided at the

regulated market are: (a) Sale Hall (Auction platform),(b) Sale Stall,(c) MarketCommittee's Office, (d)

Godown, (e) Internal Brick lined pathways,includingapproach road, (f) Providing drinking water facilities,(g) Sanitary block with drainage system.


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Arunachal Pradeshy In Arunachal Pradesh, there are no regulated markets

and the whole trade moves around the private

merchants who mostly procure the commodities atlocal markets in villages held periodically.

y The traders take the contract of standing cropsparticularly paddy and fruit and harvest it at their cost

paying less price than prevailing market price.


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y The cooperatives are mainly the distributing agenciesfor consumer goods and do not enter into the product

market for procurement of food grains, fruits orvegetables.

y The itinerant traders visit the villages all the six days ina week and collect the produce from them. The

conditions of the state do not allow for free anduninterrupted transportation.


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Cooperative Marketingy In the northeastern states the cooperatives dealing with food

grain marketing are weak in terms of organizational set-up andfinancial condition.

y The cooperative marketing societies in the region thoughestablished extensively, most of them are defective due to lack ofmarketable surplus of agricultural commodity and pricemanipulation by the private traders.

y The State Cooperative Marketing Federation has also weak

resource base and is dormant in marketing activities.y Since the regulated markets and the cooperatives are not active

in the state, paddy is mostly sold to the private traders.

y The Food Corporation of India is also procuring rice under levyfrom processors.


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Manipury The marketing of agricultural commodities in the state is largely

unorganized. In the absence of regulated markets for the agriculturalcommodities, the private trades have dominated the agricultural andhorticultural produce marketing activities in the state.

y The idea to establish a parallel marketing institution throughcooperatives has also received a setback due to reorganization ofsocieties.

y Most of these societies have become defunct due to reorganization ofPrimary Agricultural Credit Societies (PACS). These reorganized PACShas taken up the marketing of agricultural products by their area ofoperation is very limited due to paucity of finances.

y The main commodity procured by these societies is paddy. ThoughPACS are mains, the credit agencies in cooperative sector some of themhave also taken up marketing as an additional activity.


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Meghalayay The cooperative marketing net-work in the state has been

set-up for the horticultural production specifically for fruitslike pineapple and orange

y There are 5 Horticultural Produce Cooperative MarketingSocieties located within Pynursia block..

y The members of these societies are engaged inprocurement of horticultural and minor forest productsand distribution consumer goods.

y The commodity procured in these societies is Soli in theopen market through its own outlets and private tradersengage in wholesale and retail trade of fruits andvegetables.


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Tripuray The primary cooperative marketing societies are procuring specially

jute, mesta and jute seeds, paddy and oilseeds grown by the tribethrough Jhum cultivation.

y The cooperatives procure mainly from the members as sub-agents of

Tripura Apex Cooperative marketing Society Limited under pricesupport scheme.y Paddy is the main crop among food grains which the societies are

unable to procure it as the open market price of paddy is higher thansupport price and is dominated by the private traders.

y The societies are also engaged in distribution of essential commodities

through retail outlets and fair price shops.y Apart from primary agricultural produce Cooperative Marketing

Societies there are also Large-scale MultipurposeCooperativemarketing Societies (LAMPS) mainly dealing with jute procurement.


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CONCLUSION AND RECOMMENDATIONS

y The economy of the northeastern states is predominantlyagriculture having 77 percent of the working populationengaged in cultivation and the role of agriculturalmarketing system has considerable importance in theoverall economy of the region.

y It has been found that the in the selected states there arelarge number of unorganized rural markets and the privatetraders hold the core agribusiness activities in the region. Itshows that a major share of marketable surplus finds itsoutlet in the poorly equipped markets held periodically in

the villages.y Most of the transactions in the rural markets involve small

quantity of agricultural Produce to purchase thecommodities of daily requirements.


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y The northeastern states like Assam, Meghalaya andTripura have the legislation for the marketing of

agricultural produce but there exist many problems inenforcing the Act in various markets in the statesthrough the regulated market committees.Consequently a large number of rural markets are

unorganized and should be brought into regulation ina phased manner.

y The management of rural and apex markets shouldbe handed over to the local bodies electeddemocratically including cooperatives. Professionally

qualified managerial talent should replace the officerson deputation to facilitate long term planning anddevelopment of marketing institutions.


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y There is a need for strong horizontal linkages among

the unorganized rural markets, regulated markets ofapex marketing boards and primary level cooperativeson one hand and the vertical linkages across thenational institutions of the GOI, state level marketingorganizations and primary level institutions. Theselinkages should facilitate the flow of market-relatedinformation and skills as also resources information onphysical infrastructure such as transportation, storage,packaging and other facilities for planning and

implementations of government schemes.


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yAs agribusiness has fast taken shape in the country, thenortheastern states should create export wings in theirapex marketing boards, corporations and relatedmarketing organizations to drive home the market

advantage that already exists.

rural marketing in the north east

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