Rural Marketing Concepts and Growth

Rural Market Growth

• Rural markets are important because of growing rural incomes and the potential for those incomes to grow faster due to increased agricultural production and higher commodity prices.
• Rural markets are expected to surpass urban markets in demand for durable products like watches, fans, TVs, VCRs, and non-durable items like nail polish, lipstick, ice cream, shampoo, and insect repellent.
• Rural markets are increasingly adopting color and black-and-white TVs, cassette recorders, VCRs, VCPs, pressure cookers, ceiling and table fans, and sewing machines.

Rural Marketing Definitions

• Rural marketing is defined as the movement of farm-produced food, raw materials, and derivatives from farms to consumers, analyzing the impact on producers, middlemen, and consumers.
• Rural marketing includes improving rural quality of life, considering the social structure of rural communities, and facilitating interaction between rural and urban environments.
• Delivering rural-specific goods and services to satisfy demand and reach organizational goals is encompassed in rural marketing.
• Rural marketing is a two-way process involving the exchange of goods and services between urban and rural markets.

Rural Market Classification

• Rural markets can be categorized as organized or unorganized.
• Organized Rural Markets are owned by private companies or government entities, adhering to specific regulations and rules. Examples include Warna Bazar and Godrej's Aadhaar stores in rural areas.
• Unorganized Rural Markets are privately owned without affiliation to a company. They are often managed and regulated by family members. Examples include local stores, village hawkers, and individuals selling products from bicycles.

Functions of Rural Marketing

• Trading: The buying and selling of goods and services occur in local and urban markets for monetary exchange.
• Packing: Protects products from damage and deterioration during transport. Convenient handling, theft prevention, and reduced storage space are benefits.
• Storage: Provides time utility to goods, overcoming seasonal production and continuous consumption. It allows for better pricing for sellers.
• Branding: Convey quality to rural consumers. Though national brands are popular, local brands are significant in rural areas, often offering lower prices.
• Processing: Adds utility and improves quality to commodities, like polishing rice or making a product easier to sell.

Co-operative Marketing

• The National Agricultural Co-operative Marketing Federation (NAFED) was established in 1958 as the apex body for co-operative marketing.
• The Mirdha Committee recommended in 1965 that membership for agricultural marketing societies should be restricted to agriculturists, excluding traders.
• The Dantwala Committee emphasized the importance of integration among various co-operative organizations.

Advantages of Co-operatives

• Reduced costs and improved service due to combined efforts of dealers.
• Improved produce marketability by reducing undesirable market changes.
• Safeguards against price increases for members.
• Provides credit to farmers, reducing the need for immediate post-harvest sales.
• Storage facilities allow farmers to wait for better prices.
• Processing activities like oilseed crushing and cotton pressing can be undertaken.
• Market intelligence is gathered regularly to plan activities.
• Protection from illegal deductions by merchants while purchasing products from farmers.
• Possible expansion to cover aspects like credit, processing, and farming, or linking with other societies.

Structure of Marketing Co-operatives

• Co-operative Marketing Societies have two or three-tier structures.
• Two-tier structure: Primary marketing societies at the taluka level and State Marketing Federations at the state level.
• Three-tier structure: District marketing societies in the middle, with primary societies at the village level.
• National Level: NAFED serves as the apex institution.
• Base level: Primary co-operative marketing societies market produce from farmer members in their area.
• District level: Central Co-operative Marketing unions market products from primary societies, either in mandis or in processed forms.

Rural Marketing Agencies

• Intinerant Traders: Small merchants who travel between villages, purchasing produce directly from cultivators, often at lower prices.
• Transport Agency: Facilitates product movement from market to market, using railways, trucks, carts, and trolleys.
• Communication Agency: Provides information on prices, availability, and transactions, utilizing services like post, telephone, telegraph, newspapers, and radio.
• Advertising Agency: Helps prospective buyers understand product quality and make informed purchase decisions using mediums like newspapers, radio, TV, and cinema.
• Auctioners: Facilitate product auction and bidding by buyers.

Government Agencies

• National Agricultural Co-operative Marketing Federation (NAFED)
• Cotton Corporation of India (CCI)
• All India Cotton Co-operative Federation Limited
• Jute Corporation of India (JCI)
• National Dairy Development Board (NDDB)
• National Oilseeds and Vegetable Oils Development (NOVOD) Board
• Tobacco Board
• Agricultural Processed Products and Export Development Agency (APEDA)
• Marine Products Export Development Agency (MPEDA)
• Directorate of Marketing and Inspection, Government of India
• State level agricultural marketing departments and agricultural marketing boards
• State and lower level co-operative marketing societies
• Fair price shops
• Consumers co-operative stores, milk unions

Explore the essentials of rural marketing, focusing on the increasing importance of rural markets due to rising incomes and changing consumer demands. This quiz delves into definitions, trends, and the impact of rural marketing on communities and economies.