Rural Marketing And Stock Exchange Paper III (H3) PDF

RURAL MARKETING AND STOCK EXCHANGE PAPER III (H3) UNIT -1 RURAL MARKETING INTRODUCTION Marketing activities in rural India are fast growing, expanding into changing. Indian rural market is now showing its potential and is prov...

RURAL MARKETING AND STOCK EXCHANGE PAPER III (H3) UNIT -1 RURAL MARKETING INTRODUCTION Marketing activities in rural India are fast growing, expanding into changing. Indian rural market is now showing its potential and is providing ample opportunities to marketing enterprises. Rural Marketing means efforts taken by the producer to sell the product in rural areas like villages, small towns and interior parts of the country. The Indian market has a deep rural character. If rural markets are not studied, the study of marketing in India will remain incomplete. The emergence of rural market as commercial proposition to Indian marketers came to be known since the early seventies. Rural marketing is fast changing and developing. The Indian rural market provides great opportunities to marketers. More than 75% of the consumers live in rural areas and more than 50% of the national income is generated there. Hence, rural markets occupy an important place and need special attention. The rural markets have drawn attention from 1960 In the past three-four decades the market have steadily developed. Rural marketing refers to marketing activities conducted in the rural areas which cover major portion of total geographical area and population of the country. Rural markets refer to marketing centres operating in rural areas where favorable marketing infrastructure may or may not be available. The Indian rural market, with its vast size and demand base offers ample opportunities to marketers. This is particularly true in certain areas such as coastal Andhra, Punjab, Gujarat, Kerala and sugarcane regions of Maharashtra. India lives in villages. Nearly, 74% of India’s total population lives in villages spread over 5.76 lakh villages. More than 50% of national income is generated in rural India. This shows the size of the national income generated in rural India. MEANING OF RURAL MARKETING Rural marketing means marketing activities in the rural areas where favourable infrastructure may not be available. Rural marketing and urban marketing are identical as regards their basic marketing structure. However, rural markets and rural marketing have special features and problems as compared to urban markets. The rural markets offer a greater scope for a concentrated marketing effort because of the recent increase in the rural incomes and the likelihood that such incomes will increase faster because of better production and higher prices for agricultural commodities. The Rural markets dominate Indian marketing scene and need special attention for the expansion. Today the rural market offers vast untapped potentials. Development programmes in the fields of agriculture and allied activities, health, education, communication, rural electrification, etc. have improved the life styles of rural population and some market agencies forecast that the rural demand will supersede the urban demand in the near future. Estimates are that the rural market is growing twice as fast as the urban market for durable products like wrist-watches, fans, television, video cassette recorders, and also non-durables like nail polish, lipstick, ice-cream, shampoo and mosquito repellents. Among the items whose market share is on the rise in rural regions are colour and B&W TV sets, Cassette recorders, VCRs, VCPs, Pressure cookers, Ceiling and Table fans and Sewing machines. Definitions: (Study any 1) 1) According to Thomson, "The study of rural marketing comprises of all operations, and the agencies conducting them, involved in the movement of farm produced food, raw materials and their derivatives such as textiles from  the farms to the final consumers and the effect of such operations on producers, middlemen and consumers.” 2) According to CSG Krishnamoorthy, “Rural market can be defined as the process of delivering a better standard quality of life to the rural areas, taking into consideration the prevailing social structure of the rural people. It is a social process of interactions between the rural and the urban environment. Rural marketing broadly involves reaching rural consumers, estimating the needs and wants and then supplying goods and services to meet these requirements." 3) According to Lyer, “Rural marketing is the process of developing, pricing, promoting, distributing rural specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organisational objectives." 4) According to T. P. Gopalaswamy, “Rural marketing is a two- way marketing process. Its content now encompasses inflow of products into rural areas for production or consumption purposes and also outflow of products to urban areas.” 5) According to National Commission on Agriculture, "Rural marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional based on technical and economic considerations, and includes pre post-harvest operations assembling, grading, storage transportation and distribution." Nature/Features of Rural Marketing: 1. Large and scattered population: According to the 2001 census, 740 million Indians forming 70 per cent of India’s population live in rural areas. The rate of increase in rural population is also greater than that of urban population. The rural population is scattered in over 6 lakhs villages. The rural population is highly scattered, but holds a big promise for the marketers 2. Higher purchasing capacity: Purchasing power of the rural people is on rise. Marketers have realized the potential of rural markets, and thus are expanding their operations in rural India. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in purchasing power of rural communities. 3. Market growth: The rural market is growing steadily over the years. Demand for traditional products such as bicycles, and agricultural inputs; branded products such as toothpaste, tea, soaps and other FMCGs; and consumer durables such as refrigerators, TV and washing machines has also grown over the years. 4. Development of infrastructure: There is development of infrastructure facilities such as construction of roads and transportation, communication network, rural electrification and public service projects in rural India, which has increased the scope of rural marketing. 5. Low standard of living: The standard of living of rural areas is low and rural consumers have diverse socio-economic backwardness. This is different in different parts of the country. A consumer in a village area has a low standard of living because of low literacy, low per capita income, social backwardness and low savings. 6. Traditional outlook: The rural consumer values old customs and traditions. They do not prefer changes. Gradually, the rural population is changing its demand pattern, and there is demand for branded products in villages. 7. Marketing mix: The urban products cannot be dumped on rural population; separate sets of products are designed for rural consumers to suit the rural demands. The marketing mix elements are to be adjusted according to the requirements of the rural consumers. SCOPE OF RURAL MARKETING: Producers and sellers in India focus their selling attention upon the consumers in urban areas instead of focusing their attention on rural areas where 75% of our population lives. Therefore, there is a vast scope for developing markets in rural areas. The following points highlight the scope of rural marketing in India. (1) Higher purchasing power: There has been an increase in purchasing power of rural population due to increase in economic activities during the planned rural development. Heavy outlay of resources on irrigation, fertilizers, agricultural equipment’s and agro processing industry has been made. Saving habits in rural people has also increased. This too contributes in higher purchasing power. (2) Change in rural markets: There has been an increase demand for durables and non-durables like Table Fans, Radio, Mopeds, Soaps, etc, by rural consumers. This provides a ready market for the producers and expansion of Rural Market. (3) Media exposure: Before, only outdoor media was the medium to attract rural consumers. Now Information about new products is given through network programmes on TV, outdoor publicity and mobile advertisements to the rural consumers. (4) Decision making: Women in rural areas are beginning to take fast decisions for purchases. Studies reveal that 72.3% decisions are taken jointly in a family. With education and mass media, the role of children is also changing. (5) Growing urbanisation: Today rural India is characterised by growing urbanisation. Marketers can now introduce products designed specifically for rural consumers, as there has been a better understanding of rural consumer and his habits. (6) Infrastructural facilities: Substantial increase is also seen in the improvement of Infrastructural facilities. Although it is not available according to the needs of the people but banking facilities, electricity, all weather roads, etc. has helped in improvement of the status of people. This gives tremendous opportunities for marketer as now they can reach rural buyers and communicate more effectively about their products. (7) Rise of alert buyers: Literacy level of rural India is being steadily increasing with the launching of adult literacy scheme. Language barrier has been disappearing. Rural consumers now think differently and decide from available alternatives. Now rural consumers can defend themselves with the help of increased awareness. (8) Opinion leaders: The one who acquires, processes and interprets information is an Opinion Leader. Opinion Leaders help in interpretation of information to others to help them for arriving at a correct decision. Educated people have taken up the role of being Opinion Leaders. Friends and relatives who have some experience in buying the product act as 'User Endorsers' and provide the necessary information. IMPORTANCE OF RURAL MARKETING Rural market is growing faster than urban, rural marketing results into overall balanced economical and social development. Rural marketing turns beneficial to business units, people residing in rural areas, people residing in urban areas, and to the entire nation. Let’s see how growth and development of rural marketing contribute to overall prosperity and welfare. 1. Reduced Burden on Urban Population: Rural marketing can contribute to rural infrastructure and prosperity. People can also live comfortably in villages due to availability of all goods and services in villages, even comparatively at low price. People, due to growth of marketing activities, can earn their livelihood in rural places. Population pressure on urban can be reduced. 2. Rapid Economic Growth: Naturally, marketing acts as catalyst agent for economic growth. There exists more attractive business opportunities in rural than urban. Rural market is more potential for consumer durables and services. Rural population largely depends on agriculture and it can contribute nearly 50% to total national income. Agriculture enjoys significant portion in export business, too. Rural marketing improves agricultural sector and improved agricultural sector can boost whole economy of the country. 3. Employment Generation At present, nearly 70% of total Indian population feeds on agricultural activities in rural areas. Rural marketing can generate more attractive employment opportunities to rural and urban people. Growth of rural marketing leads to increased business operations, professional activities, and services that can generate a lot of employment opportunities. 4. Improved Living Standard: Due to rural marketing system, rural buyers can easily access needed standard goods and services at fair prices. In the same way, rural marketing improves rural infrastructure. Additionally, rural marketing can also improve their income. These all aspects can directly improve living standard. 5. Development of Agro-based Industries: Rural marketing leads to set up agro-based processing industries. Fruits, vegetables, cereals, pulses, etc., are used as raw-materials. Such industries can improve farmers’ profit margin and employment opportunities. 6. Optimum Utilization of Rural Untapped Resources: There are unlimited businesses opportunities exist in rural areas. Untapped and underutilized resources can be utilized at optimum level and that can further accelerate overall economic growth. 7. Easy Marketability of Agricultural Produces: Growth of rural marketing improves whole marketing system. Multiple options are available to farmers and local producers to market their products. Big domestic corporate houses and multinational companies prefer to buy agricultural products directly from villages by their own or through agents and small firms. Rural producers can sell their produces easily at satisfactory prices. Their improved income level can improve their purchasing power that can further fuel to industrial demand. 8. Improved Rural Infrastructures: Rural marketing and basic infrastructures go hand to hand. Growth of rural marketing leads to improved transportation, insurance, banking, communication, entertainment, and other facilities. Due to availability of basic infrastructural facilities, business units can easily reach the target rural buyers. 9. Price Stability: Marketing results into better transportation, warehouses, and communication facilities. Agricultural products can be systematically marketed throughout the year. Huge gap between demand and supply can be avoided and, as a result, prices of most of commodities remain more or less stable. 10. Quality of Life and Reduced Crime: Marketing can refine entire living style and system. Better quality products at reasonable price, improved income level, availability of facilities, etc., have direct positive impacts on quality of life. Quality of life improves and level crime reduces. 11. Balanced Industrial Growth: The gap between rural and urban development can be reduced gradually. Rural development improves rural life and reduces pressure on urban life. Classification of Rural Market Rural market is classified into two categories Organised & Unorganised:- Organised Rural Market It is market which is owned by a private company or government sector based on certain principles. They have license to sell the products & abide by the rules & regulations of the government. Example: - Warna Bazar , Godrej has set up Aadhaar stores in rural areas, the same way they have established Nature’s Basket in Urban Areas. Unorganised Rural Market It is a market which is owned by a private individual & based on the principles, but not owned by any private company. Example:- Local Kiryana shops in rural area, Hawkers selling vegetables & fruits in villages, people sell products like bangles, paper, bindi on bycycle. Unoragnised rural market are basically managed & regulated by the family members, whereas this is not the case of organised rural market. There was a time when concept of rural market was not even prevalent. But now it is gaining it popularity especially after green revolution. Functions of Rural Marketing 1. Trading:- In rural marketing, the buying & selling of goods & services takes place in the local & urban market for the exchange of money. 2. Packing:- In rural marketing, packing protects the products from physical damage and deterioration in quality during transport. Handling the produce is convenient as for example, cotton pressed into bales or fruits packed into baskets are easy to handle and transport. Packing also protects the product from theft and adulteration. Packed products occupy less storage space and thus reduce storage cost. 3. Storage:- Storage adds time utility to the commodity. In agriculture, production is seasonal and consumption is continuous. Hence storage makes goods available in continuous manner. Storage also enables the sellers to fetch a better price. 4. Branding:- The brand is the surest means of conveying quality to rural consumers. Day-by-day though national brands are getting popular, local brands are also playing a significant role in rural areas. In rural areas local brands are more famous particularly soaps, creams, clothes etc whose prices are often half of national brands. Local brands are becoming popular in rural markets in spite of their lower quality. 5. Processing: - In rural marketing, processing adds utility to a commodity. It also improves the quality of product like polishing of rice or making the product sale. Processing of products are necessary in rural marketing for preservation. Highly perishable products are converted into less perishable products. 6. Financing:- Farm products take time in reaching the hands of final consumer. During the period between the first sale of farm products and sale of finished goods to ultimate consumer, capital remains tied up. The service of making credit and money available to meet the cost of selling products to final consumers is commonly referred to as the finance function in the rural market. The need for financing in term of durable may be considered as proportionate to the length of time the whole market process takes place. CO-OPERATIVE MARKETING INTRODUCTION Co-operation means working together or jointly. Co-operation is a philosophy, a ruling principle of our social, educational and industrial life. Basically, the co-operatives are economic organisations where members are the owners; operators and contributors of commodities handled and are direct beneficiaries of savings that might accrue. Private agencies dominated the Indian foodgrain trade. Farmers complained of the marketing system because they got lower prices, mainly due to high marketing charges and the prevalence of malpractices. The efforts of the government to improve the marketing system of agricultural commodities had been partially successful in creating healthy conditions for scientific and efficient marketing. In order to remedy the defects in agricultural marketing, efforts were made to introduce Co-operative Marketing. Co-operative marketing is based on the principles of co-operation. It is a system by which a group of farmers join together to carry out some or all the processes involved in carrying agricultural produce from the producer to the consumer. It is a voluntary association formed by its members for mutual benefit and help. Such an association brings diverse benefits to its members in terms of fair prices. DEFINITION OF CO-OPERATIVE MARKETING. According to Reserve Bank of India, “Co-operative Marketing is a co- operative association of cultivators formed primary for the purpose of helping the members to market their produce move profitably than is possible through private trade”. According to Margaret Digley, and F.A.O. expert, “Co-operative Marketing is the system of which a group of farmers or market gardeners join together to carry on some or all the process involved in bringing goods from the producer to the consumer”. OBJECTIVES 1) To make arrangement for the sale of member’s produce to their possible advantage by eliminating speculative practices. 2) To provide facilities and guidance to producers for improving the quality of their produce. 3) To stabilize prices. 4) To provide financial assistance to member producers. 5) To act as government agent for procurement of food grains and agent for implementation of price support policy. 6) To strengthen the bargaining capacity of the cultivators. 7) To facilitate the transport of the produce. 8) To assure a regular trade outlet to member producers. 9) To improve the economic condition of the producer by strengthening their bargaining power. A co-operative marketing society aims at bringing economy in cost of marketing giving reasonable return to the farmer for his produce, supplying quality goods to customers, making available grading and transporting facilities acting as agent of the government for procurement and implementation of price support policy, helping farmers promote their economic interest by encouraging self help and thrift and linking marketing with credit. Similarly, a co-operative marketing society strengthens the bargaining power of the cultivators and also makes arrangements for processing the produce. HISTORY OF CO-OPERATIVE MARKETING (Only Remember Year) The history of co-operative movement dates back to 1912 when the Co- operative Marketing Societies Act was passed. In 1913 the first market society was the Kumbakonam Agricultural Society which supplied seeds, manures, implements and arranged sale of the products of its members. In 1915 a Marketing Co-operative Society was formed at Hubli with the objective to encourage the cultivation of improved cotton and sell it collectively. In 1918, the South Canara Planters Co-operative Sale Society was formed in the then composite Madras province for joint sale of arecanut. The Royal Commission on Agriculture (1928) stressed the need for group marketing instead of individual marketing. The Central Banking Enquiry Committee also underlined the need for organised marketing. The XI conference of Registrars of Co-operative Societies (1934) emphasised the importance of Co-operative marketing. In 1945 the Co-operative Planning Committee recommended that at least 25 percent of marketable surplus should be channelised through co-operative societies within the next 50 years by forming one society for a group of 200 villages. In 1958, the National agriculture Co-operative Marketing Federation (NAFED) came into power as the apex body of Co-operative Marketing. In 1965, the Mirdha Committee recommended that the membership of agricultural marketing societies should be restricted to the agriculturists and traders should not be allowed to join agricultural marketing societies. The Dantwala Committee stressed the need for co-operation and integration among the various co-operative organisations after reviewing the pattern of co-operative marketing distribution of inputs to farmers and supply of consumer products. ADVANTAGES OF CO-OPERATIVES: (1) Reduce cost and improved service: Cooperative marketing helps to reduce cost and improve service. Assembling is being done by a member of dealers each of whom does not have sufficient volume of business. (2) Improve marketability: Cooperative marketing societies helps to improve marketability of produce. They can also reduce all undefined and undesirable market changes. (3) Safeguards against price rise: It safeguards the interest of the society members against the rising price. (4) Provides credit: Marketing societies provide credit to the farmers and save them from the necessity of selling their produce immediately after harvesting. This ensures better returns to farmers. (5) Storage facilities: Farmers can wait for better prices as the cooperative marketing societies have storage facilities. (6) Processing of agricultural produce: Cooperative societies can undertake processing activities like crushing oilseeds, pressing of cotton etc. (7) Market intelligence: Cooperatives can arrange to obtain data on market prices, demand and supply and other information from the markets on regular basis and can plan their activities accordingly. CAUSES OF POOR PERFORMANCE (Same Answer can be written for Disadvantage or Limitation) 1. The inadequacy of working capital. 2. Lack of facilities for processing of produce. 3. Out dated methods of marketing which offer no incentive to producers. 4. Lack of the confidence of the members in the society’s personnel. 5. Absence of adequate and expert technical advice were organised and state partnered. 6. Inadequate and under developed state of transport facilities. 7. Defective loaning policies. 8. Dominance of traders and non-cultivators as members of the society. 9. High operative costs of the societies. 10.Lack of trained and efficient staff. 11.Lack of support and guidance from apex marketing societies. 12.Unremunerative price offered to cultivator as against price obtained on open market. e.g. cotton federation of Maharashtra State. 13.Concentration on distribution function at the cost of marketing activities. 14.Disloyally of members in not members in not marketing their produce through the marketing co-operatives. NEED AND IMPORTANCE OF CO-OPRATIVE MARKETING. In the context of rural marketing, co-operative marketing is of great importance. (1) Abolition of Middlemen : By eliminating the role of middlemen, cooperatives have been successful in protecting the interest of their members. (2) Collective bargaining : Cooperative societies have bargaining power more than that of a single producer. (3) Storage Facility : Cooperative societies have their own godowns for storing their products. They also provide storage facilities to their members at nominal charges. (4) Standardistion and Grading : The goods in the societies are rearranged according to their predetermined standards and grades so that they are sold at highest possible prices. (5) Higher Prices of members : Cooperative societies ensure highest possible prices for the products as they keep themselves in close touch with the rates in market and sell them when the prices are high. (6) Market infrastructure : Cooperative marketing societies have a very large and wide infrastructure. There are facilities such as (godowns), warehouse, transport, grading etc. These facilities involve large costs, which are beyond their means. For this, they can seek financial assistance from government for the establishment of these facilities. (7) Supplying inputs and consumer goods : Cooperative societies can easily undertake supply of inputs needed by the farmers. These societies can finance purchases by the farmers from the sale price of their produce. Besides buying of inputs and consumer goods by marketing society at wholesale rates will benefit member farmers. This results terms of trade to farmers increasing their incomes. (8) Facility of Correct weighing : cooperative marketing societies help in offering reasonable price for the products to their members because they arrange for correct weighting of the product of their members. (9) Relief from illegal deductions : The merchants make many unauthorised and illegal deductions while taking agricultural products from the farmers. These deductions are made in the name of charity, donations etc. Cooperative societies protect their members from such illegal deductions. (10) Linking credit, processing and farming : Cooperation in the field of marketing can either expand to cover such other aspects of agriculture as credit, processing and farming, or the operation of co-operative marketing societies can be linked with other societies. STRUCTURE OF MARKETING CO-OPERATIVES. (Just Read & Remember Structure) The Co-operative Marketing Societies have both two=tier and three tier structure. In the States of Assam, Kerala, Bihar, Madhya Pradesh, Karnataka, Orissa, Rajasthan and West Bengal, there is a two-tier pattern with primary marketing societies at the taluka level and State Marketing Federations as an apex body at the State level. In other State there is a three-tier structure with district marketing society in the middle. The pattern of the three-tier structure is discussed below : Structure of Co-operative Marketing Societies. NAFED (National Level) FEDERATION (State Level) UNION  (District Level) PRIMARY CO-OPERATIVE MARKETING SOCIETIES (Village Level) Fig. 8.1 Organisational Structure of Co-operative Marketing in india In India Co-operative marketing societies have both two-tier and three tier structure. At the national level NAFED serves as the apex institution. At the base level, there are primary co-operative marketing societies. these societies market the produce of the farmer members in that area. They are located at the primary wholesale market. At the district level, there are Central Co-operative Marketing unions. Their main job is to market the produce brought for sale by the primary co- operative marketing societies of that area. These are located at the secondary wholesale markets. The members of these unions are primary co-operative marketing societies and individual farmer members. In the two-tier structure, the state level societies perform these functions through their branches throughout the state. At the state level, there are apex State Co-operative Marketing Societies of Federation. Their members are both the primary co-operative marketing societies and the Central or District Cooperative Unions of the state. Their basic function is inter-state trade, procurement and distribution of inputs, and export-import, dissemination of market information and rendering professional service for the agricultural marketing system. For Example, In milk production and distribution, NDDB (National Dairy Development Board) operates at national level. At state level KMF (Karnataka Milk Federation), at districts level they have BAMUL (Bangalore Milk Union Ltd.) and at village level they have a number of village level co-operative societies.  In India, the network of co-operative marketing structure now comprises over 6,000 primary marketing societies. At the district level, there are 170 Central Marketing Societies. At the State level, there are 29 general purpose state level Marketing Federation and 16 special commodity Marketing federation, and at the All India level there is National Co-operative Development Corporation (NCDC), the national Agricultural Co-operative Marketing federation (NAFED). SUGGESTIONS FOR IMPROVEMENT OF MARKETING CO- OPERATIVES: (Refer any 8 points) 1. Marketing societies should be located at the mandicentres (Bazar places) and the area of operation should be the hinter land of the markets concerned. 2. Organisation of societies should be on democratic lines producer cum trader should not be allowed to become full members. there is a danger of pseudo Co-operatives from this type of members. 3. Marketing societies can only hope to succeed if they have competent and efficient managers and staff. Proper training and incentive schemes should be developed to retain the efficient persons in co-operative field. 4. The finance of the societies should be improved by enrolling more individuals as members and by collecting additional share capital from primary agricultural societies. 5. Grading and processing should be developed and produce market only after grading and processing is done. 6. Godowns should be provided by the societies with financially assistance from the Government. 7. The State Bank of India should give high priority to the requirements of these societies. 8. The Reserve Bank of India should allow the State Bank of India to barrow from it additional funds to enable the latter to meet the requirements of marketing societies. 9. There should be greater co-ordination between many farming and credit societies for the success of different types of co-operative organisation. 10. Existing potentially viable societies should be revitalised while defunct (Societies which have not handled sufficient volume of business) societies should be liquidated. 11. New societies should be organised at the different regional levels in areas of concentrated production of commercial crops fruits and vegetables. 12. Marketing societies must arrange to market purchases, particularly from small grower members undertaking sales on commission basis. 13. Marketing societies and regulated markets have to work in close co- ordination with each other, the regulated markets ensuring fair trade practices and marketing societies offering competition with private traders by purchasing agricultural produce brought by farmers. 14. Last but most important all farmer members must get higher price than that offered by private traders, besides the efficient services in every respect. The marketing co-operative should become effective competitor to the existing private agencies in the existing market structure. Agency involved in Co-operative Marketing Pucca Arhatias He is the real purchase in the wholesale market on his own behalf of acting for some businessmen, firms in consuming markets. Big mills (rice, oils, cotton etc.) play as their agent and order him to purchase certain quantity within a given range of price. When pucca arhatia trades on his own, he dispose of his produce brought by him through dealers in different parts of country. Katcha Arhatia He also advances money to the cultivators and village banias on the condition that the produce will be disposed off through him alone and hence charges a very nominal rate of interest on the money advanced. Katcha arhatia charges commission for services rendered by him. Important link between the village cultivator or traders on the one hand. Village Merchants He is an important agency in the collection of produce and more so when the mandi is situated at a considerable distance from the village. He advances from his shop either on credit or for exchange of food grain or so price given for cultivator's produce. The quantities of agril. Produce so collected are either disposed off in the mandi or retained for resale in the village in the processed forms, such as rice, flour, oil etc. Intinerant Traders They are small merchants, who move from village to village and buy the produce from cultivator's house. They give a lower price than selling in the nearby market and in setting transportation take into consideration, the factors such as cost of transportation, market charges and profit margin. Transport Agency This agency assists in the movement of the produce from one market to another e.g. railways, trucks, bullock carts, camel carts, tractor trolleys. Communication Agency It gives information about the prices prevailing, and quantity available and transactions e.g. post, telephone, telegraph, newspapers, radio. Advertising Agency It enables prospective buyers to know the quality of the product and decide about the purchase of commodities e.g. newspapers, radio, television, cinema slides. Auctioners They put produce for auction and bidding by the buyers. Government agencies The National Agricultural Co-Operative Marketing Federation (NAFED) Cotton Corporation 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) The 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