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Rural Marketing M1M3

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MODULE – I
➢ Describe the scope of rural marketing.
➢ Explain the Evolution of Rural Marketing.
➢ Discuss the 4P’s of Rural Marketing Strategies.
➢ Explain the Rural Infrastructural Facilities.
➢ Discuss the Logistic steps in new product development.
➢ Differentiate between Rural and Urban market.
➢ Discuss the importance of Branding.
➢ Describe the Scope and Importance of Transportation Networking in Rural Markets.

MODULE – III
➢ Describe the importance of Agricultural marketing.
➢ Describe the issues of agricultural marketing.
➢ Explain the features of Cooperative and Self Help Groups (SHG) in rural marketing.
➢ Explain the role of Commodity Boards.
➢ Explain the role of APEDA.
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MODULE – I
Question: Describe the scope of rural marketing.
Answer: Introduction:

Meaning & Definition of Rural Marketing:


• The concept of Rural Marketing in Indian Economy has always played an influential
role in the lives of people.
• In India, leaving out a few metropolitan cities, all the districts and industrial
townships are connected with rural markets.
• The rural markets in India generate bigger revenues in the country, as the rural
regions comprise of the maximum consumers in this country.

Definition:-
• ‘Rural marketing’ is similar to simply ‘marketing.’ Rural marketing differs only in
terms of buyers. Here, the target market consists of customers living in rural areas.
Thus, rural marketing is an application of marketing fundamentals to rural markets.

• “Rural marketing is a process of developing, pricing, promoting and distributing rural


specific goods and services to satisfy rural consumer’s needs and wants.”
– National Commission on Agriculture

SCOPE OF RURAL MARKETING


1. Population
2. Rising Rural Prosperity
3. Growth in Consumption
4. Change in life style and Demands
5. Market Growth Rate higher than Urban
6. Life Cycle Advantage
7. Decision-making Units
8. Rural Marketing is Not Expensive

1. Population:
• According to 2011 Census, rural population is 72% of total population and it is
scattered over a wide range of geographic area.

2. Rising Rural Prosperity:


• Average income level has improved due to modern farming practices, contract
farming, industrialization, migration to urban areas and remittance of money
by family members settled abroad.
• Saving habits in rural people also has increased. This too contributes in higher
purchasing power.

3. Growth in Consumption:
• There is a growth in purchasing power of rural consumers. But, the average
per capita house hold expenditure is still lower as compared to urban
spending.
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4. Change in life style and Demands:


• Life style of rural consumer changed considerably.
• There has been increased in demand for durables and non-durables like table
fans, radios, soaps, etc. by rural consumers. This provides a ready market for
the producers.
• Rural market is expanding day after day.

5. Market Growth Rate higher than urban:


• The growth rate of fast moving consumer goods (FMCG) market and durable
market is high in rural areas.
• The rural market share is more than 50% for products like cooking oil, hair oil
etc.

6. Life Cycle Advantage:


• The products which have attained or achieved the maturity stage in urban
market is still in growth stage in rural market.

7. Decision-making Units:
• Women in rural areas are beginning to make fast decisions for purchases.
• Studies reveal that 72.3% decisions are taken jointly in a family.
• With education and mass media, role of children in decision making is also
changing.

8. Rural Marketing is Not Expensive:


• To promote consumer durables inside a state costs Rs one crore while in urban
areas it will costs in millions.

Question: Explain the Evolution of Rural Marketing.


Answer: EVOLUTION OF RURAL MARKETING:

PHASE – 1 (Before 1960)


• Rural marketing was synonymous to agricultural marketing. Agricultural produce
and allied products were bought and sold. All the initiatives taken for rural
marketing, it was especially for agriculture.
• Agricultural products such as food grains and industrial inputs such as cotton,
sugarcane, and other agricultural products were the most popular at this time.
• Because the rural economy was still in its inception, the range of farm equipment
such as tractors, pump sets and agriculture inputs like fertilizers, seeds, and
pesticides were restricted.
• Prior to 1960, there was only one company Asian Paints was the first company to
enter the rural market in 1949.
• This was totally an unorganized market where all banias and mahajans (Local
business people) dominated this market.
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PHASE – II (1960 to 1990)


• In this era, green revolution resulted from scientific farming and transferred many of
the poor villages into business centers.
• Better irrigation facilities, use of fertilizers, pesticides, high-yield variety seeds
coupled with application of implementations like tractors, harvesters, pump sets and
sprinklers resulted in growth of agricultural production, changed the rural scenario.
• In this context, marketing of agricultural inputs took the importance.
• Two separate areas of activities had emerged during this period ‘marketing of
agricultural inputs’ and the conventional ‘agricultural marketing.’

PHASE – III (After Mid 1990s)


• India's industrial sector grew stronger and more advanced throughout this period. A
new service sector arose, signalling the shift from an agricultural to an industrial
society.
• India’s industrial sector gained strength leading to transition from agriculture to
industry.
• This phase made the Indian and the new multi-national companies realize the
importance of rural markets that had been neglected for a long.
• Meanwhile, higher Central and State government plan outlays for rural development
and local governance (via Panchayati raj institutions) resulted in socio-economic
improvement.
• Furthermore, economic reforms converted markets into competitive ones.
• All of these reasons contributed to the expansion of rural markets.

Question: Discuss the 4P’s of Rural Marketing Strategies.


Answer:
• Most of the companies treat rural market as a dumping ground for the lower end
products designed for an urban audience.
• But, this scenario is slowly changing and importance is given to the need of the rural
consumer.
• Hence it is important to understand the 4Ps of rural marketing with respect to a rural
consumer.
• Since behaviour of rural consumers are different and almost unpredictable in nature,
the marketers have a challenging task to design marketing mix strategies for the rural
sectors.

A.Product Mix:
• Product is a powerful tool of an organization’s success.
• The product must be acceptable to rural consumers in all significant aspects.
• The firm must produce products according to the needs and future demands of rural
buyers.
• The products features like size, shape, colour, weight, qualities, brand name,
packaging, labelling, services, and other relevant aspects must be fit with the needs,
demands and capacity of rural buyers.
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B. Price Mix
• Price is the central element of marketing mix, particularly for rural markets.
• A rural customer is price sensitive and shops for value mainly because of his lower
income levels than his urban counterparts.
• Rural consumers are most price sensitive and price plays more decisive role in
buying decisions.
• Pricing policies and its strategies must be formulated with care and caution.
• Hence the marketer has to find ways of making the product affordable to the rural
consumer.
• Normally, the low-priced products always attract the rural buyers, but rarely some
rural customers are equality and status conscious.

C. Promotion Mix
• Most of the companies advertise their products and services on television and they
are sure it reaches the target audience.
• This is because a large section of the rural India is now glued to TV sets.
• Marketers have to decide on promotional tools such as advertisement, sales
promotion, personal selling and publicity and public relations.
• The method of promotion needs to meet the expectations of the market. Vehicle
campaigns, entertainment films, generating word of mouth publicity, colorful wall
posters, etc. – all these techniques have proved effective in reaching out to the rural
masses.
• Village fairs and festivals are ideal venues for projecting these programs.
• In certain cases, public meetings with Sarpanch and Mukhiya too are used for rural
promotion.

D. Place Mix
• Rural market faces critical issues of distribution. A marketer has to strengthen the
distribution strategies.
• Distributing small and medium sized packets through poor roads, over long
distances, into the remote areas of rural market and getting the stockiest to do it
accordingly.
• Both physical distribution and distribution channel should be decided carefully to
ensure easy accessibility of products for rural consumers.
• Choosing the right mode of transportation, locating warehouses at strategic points,
maintaining adequate inventory, sufficient number of retail outlets at different
regions, and deploying specially trained sales force are some of the critical decisions
in rural distribution.
• Nowadays, online marketing is also making its place gradually in rural areas.
Marketers must design and modify their distribution strategies time to time taking
into consideration the nature and characteristics prevailing in rural areas.
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Question: Explain the Rural Infrastructural Facilities.


Answer:
The rural India is getting urbanized very fast and the taste of rural is almost going to be the
same as urban has.

1. Warehousing:
• Warehousing is the process of storing physical inventory for sale or distribution.
• Warehouses are used by all different types of businesses that need to temporarily
store products in bulk, before either shipping them to other locations or individually
to end consumers.
• For instance, many ecommerce businesses will purchase products in bulk from their
suppliers, who ship them to their warehouse for storage. When an end customer then
places an order from the ecommerce site, the business — or its third-party
fulfilment provider — picks and packs the product from the warehouse and ships it
directly to the customer.
• Warehousing is an essential part of the supply chain for most types of businesses that
deal in physical goods.
• This could be consumer businesses holding a product that eventually makes its way
to an end retail customer, or it could be business to business (B2B) companies
storing products that eventually make it to business customers.

For retail and ecommerce businesses, warehousing allows:


1. The purchase of wholesale goods in bulk that may not fit in a physical retail store or
yet be purchased by an end consumer online.
2. Large bulk orders - which allow these businesses to negotiate lower prices with their
suppliers, thus improving their margins when selling to customers.
3. Keeping inventory available as demand fluctuates to ensure products stay in stock.

4. It facilitates the obtaining of advances from bankers against the security of


warehouse receipts, which are documents of title of goods. It will save farmers from
the clutches of the moneylenders.
5. It will ensure farmers to get the benefit of remunerative prices by storing their
produce till favourable price could be obtained.
6. It helps in getting incentives back to farmers, which is essential for modern
agriculture.

7. It will prevent distress sale of agricultural produce immediately after harvest when
the prevailing prices are at their lowest.
8. The goods are handled properly and stored scientifically to prevent damage,
deterioration and loss during handling and storage.
9. This will also make available agricultural inputs required for growing crops and
increasing production. The loss, if any, in quality or quantity is minimum.
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2. Cold Storage:
• This is essential for safety and protection.
• For certain perishable goods like fruits, vegetables, meat products, eggs, etc. cold
storage is preferred.
• At present, cold storage facility is inadequate and need to be increased, with
growth in agro-products the need for more and more storage facility would
increase.
Classification of Cold Storage in India:
As per the present day practice, cold stores can be classified mainly as follows:

1. Bulk Cold Stores:


Generally, for storage of a single commodity, these mostly operate on seasonal basis
e.g. stores for potatoes, chillies, apples and so on.

2. Multipurpose Cold Stores:


These are designed for storage of variety of commodities which operate, practically,
round the year.
The products stored in these types of cold stores are fruits, vegetables, dry fruits,
spices, pulses, and milk products.
These units have been mainly located near the consuming centres.

3. Small Cold Stores:


These come with pre-cooling facilities for fresh fruits and vegetables, mainly, for
export-oriented items like grapes.
The major concentration of these units is in Maharashtra but the trend is now picking
up in other states like Karnataka, Andhra, and Gujarat.

4. Frozen Food Stores:


These come with or without processing and freezing facility for fish, meat, poultry,
dairy products and processed fruits and vegetables.
These units have helped the promotion and growth of frozen foods sector, both in the
domestic and the export markets.
However, the percentage of foods processed is extremely low and a great potential
exists for growth in this category.

5. Mini Units / Walk-in Cold Stores:


These are located at restaurants, hotels, malls and supermarkets.

6. Controlled Atmosphere (CA) Stores:


These are meant for certain fruits / vegetables like apples, pears and cherries etc.

7. Ripening Chambers:
These are mainly setup for bananas and mangoes.
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Question: Discuss the Logistic steps in new product development.


Answer:

1. Idea Generation:
• The process of developing a new product begins with the generation of ideas. And to
generate the ideas, companies can focus on customer demands and needs.
• The company generates new ideas internally. It includes both R&D and staff
contributions. Employees are frequently the biggest source of fresh ideas.
• Organizations like Toyota have created incentive programs to encourage their
employees to come up with viable ideas in this regard.
• The company also seeks out new ideas from outside sources. It includes external
sources such as distributors and suppliers, as well as competitors.
• Customers are the most significant external source, since the new product
development process stages must be centered on delivering value to customers.

2. Idea Screening:
• Not every idea is suitable to become a product.
• For that reason, companies have to screen the ideas. Companies can label an idea as
promising and act on it, marginal and try to improve it, or simply poor and reject it.
• It is also very important for companies to avoid any bias related to the source of the
idea.
• So even if someone like Steve Jobs pitches an idea, the company should still be very
careful with it.
• However, there are more things to consider while screening a product idea than
whether it is “strong” or “weak.”
• Ideas must also be compatible with a company’s broader business plan and direction.

3. Product Development Process:


• During the third stage of the process, the product idea grows into multiple concepts.
Companies will repeat the screening process to choose the best of them and pit them
against each other.
• Most companies will introduce their concepts to focus groups and analyse their
reactions.
• The products that do the best in front of the focus groups or test consumers go into
development.

4. Marketing Strategy:
• Once a company decides on the product, they will have to spend time developing a
marketing strategy for it.
• Experts will evaluate the size of the market, demand for the product, and revenue
estimates.
• The marketing team will get a budget for their efforts and they can select distribution
channels.
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5. Business Model:
• The development of a business model works very similarly to the development of a
marketing strategy.
• The experts in the company will estimate the costs and profits and manage the
potential of the product.
• Also, they will estimate the economic feasibility of the new product.

6. Manufacture:
• At this stage, the production finally begins.
• The company will make multiple prototypes (an early version of a product from
which future versions are developed) and choose on which designs get to go to the
next stage.
• Also, the company will, once again, perform a cost analysis to see if it matches the
estimates.
• And if the costs go above the higher-end estimates, the company might abandon the
project.

7. Branding:
• Once the company finally has a physical product in their hands, the marketing team
can get to work. For starters, they can develop the brand name, packaging, and the
marketing message behind the product.
• They will also determine the price of the product.

8. Product Launch:
• The final phase of the product development process is the commercialisation phase.
• The product is launched, and it is followed by a developed marketing strategy in
order to maximise its earning potential.
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Question: Differentiate between Rural and Urban market.


Answer:
• Based on the density of population, development, amenities, employment
opportunities, education, etc. human settlement is majorly divided into two
categories i.e., Urban and Rural.
• Urban refers to a human settlement where the rate of urbanisation and
industrialisation is high.
• On the other hand, in a rural settlement, is one where the rate of urbanisation is quite
slow.
• Another important difference between the two human settlements is that while
urban areas are highly populated, rural areas have comparatively less population
than the urban ones.
• Take a read of this article, in which we’ve compiled the important point to distinguish
the two.

Basis of Comparison Urban Rural

Meaning: A settlement where the An area located in the


population is very high and outskirts, is known as
has the features of a built rural.
environment, is known as urban.

Includes: Cities and Towns. Villages and hamlet.

Life: Fast and Complicated. Simple and Relaxed.

Environment: Greater isolation from nature. Direct contact with nature.

Associated with: Non-agricultural work, i.e. Agriculture and livestock.


trade, commerce or provision
of services.

Population Size: Densely populated. Sparsely populated.

Development: Planned settlement exists in Developed randomly,


urban areas, that are developed based on availability of
according to the process of natural vegetation and
urbanization and industrialization fauna in the area.

Social Mobility: Highly intensive. Less intensive.

Division of Labour: Always present at the time of No such division


job allotment.
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Question: Discuss the importance of Branding.


Answer:
A brand is a name, term, sign, symbol or design or a combination of them, intended to
identify the goods and services of one seller or a group of sellers and to differentiate them
from those of competition.

Importance of Branding:
1. Creates Consumer Preference for the Product or Service Behind the Brand
2. Generates Increased Revenues and Market Share.
3. Helps the Company Survive Temporary Crisis.
4. Expands the Organization’s Estimated Worth
5. Keeps New Competition Away
6. Increases Employee Productivity
7. Increases Profitability by Commanding a Higher Price
8. Helps the Company Attract New Distribution for its Products
9. Makes a Remarkable and Unique Brand Image
10. Generates New Customers
11. Increases Business Value
12. Keeps Reputation and Trust

Question: Describe the Scope and Importance of Transportation Networking in Rural


Markets.
Answer:
SCOPE:
• Rural community members primarily use six types of transportation to move around
their environment.
• Depending on the community, some types of transportation may be more commonly
available than others. These include:
1. Buses, including those that operate within and between communities
2. Passenger train service, including Amtrak or commuter rail lines
3. Passenger air service, which can be commercial, private, or semi private

4. Personal vehicles like automobiles, including vans and cars for hire like taxis
or ride-sharing services, and golf carts or all-terrain vehicles (ATVs)
5. Pedestrian transportation, which includes walking and bicycling
6. Boats, which may be personally owned or operated as a ferry service

• Transportation refers to any vehicle that moves people and goods from one place to
another.
• In the United States, key modes of transportation for people and goods include buses,
trains, trucks, cars, airplanes, and other forms of motorized vehicles. However,
transportation can also refer to bicycles, boats, and even pedestrian traffic. Both
public and private authorities can manage transportation systems, which can involve
maintaining and updating infrastructure to ensure the system runs smoothly.
Transportation infrastructure may include roads, bridges, bus stations, train tracks,
airports, sidewalks, or ferry terminals.
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IMPORTANCE:

About seventy percent of the population of India are living in the rural areas. Therefore
developments in urban centres alone do not indicate the overall development of the
country.
Only with the improvement in transportation facilities in rural areas, there could be faster
developments of these areas, resulting in overall development of the country.

For the growth of rural areas, transport is very important. Better transportation enables
farmers to quickly get their farm produce to the market.

1. Improved transportation services leads to improve access to market centres for the
rural producers, better availability of farm inputs at reduced price.
2. Better connectivity enhances employment opportunities in the non-agricultural
sectors.
3. Improved services with improved road connectivity, enhances access to education,
health and financial services.

4. It improves the connectivity of village people from major city roads, by that all public
services are improved.
5. Transport allows individuals to travel from one place to another. It can be used to
transfer items or raw materials from one location to another location.
6. It can also be used as a source of income. Rickshaw Walas, tonga walas, jeep drivers,
for example, get money for their transport service.

7. This helps to increase attendance levels in schools by providing both students and
teachers with access to schools.
8. Improved access to markets and cities adds to business growth as well.
Better transportation enables farmers to quickly get their farm produce to the
market.
9. It allows rural citizens from remote clinics or medical centres to use medical services.
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MODULE – II
Question: Describe the importance of agricultural marketing.
Answer:
Agriculture and marketing are the two words that make up the term agricultural marketing.
Agriculture, in its broadest meaning, refers to activities aimed at maximizing the use of
natural resources for human benefit. However, it is most commonly used to refer to the
process of cultivating and/or rearing crops and livestock.
The term “marketing” refers to a set of activities involved in getting products from point of
production to point of consumption.

Agricultural marketing is a process that involves assembling, storage, processing,


transportation, packaging, grading and distribution of different agricultural commodities
across the country. The agricultural marketing system is a link between the farm and the
non-farm sectors.

IMPORTANCE OF AGRICULTURAL MARKETING:


The following points reveal the importance of agricultural marketing.

1. Optimum use of resources and Output management


2. Creation of Employment
3. Better living
4. Adoption of new technology
5. Addition to National Income
6. Growth of Agro based Industries
7. Increase in the Income of the Farms
8. Creating of Utility

Optimum Use of Resources and Output Management:


An efficient agricultural marketing system leads to the optimum use of both input and
output resources.
It also contributes to an increase in the surplus by diminishing the losses arising out of
inefficient processing, storage and transportation.

Creation of Employment:
The agricultural marketing system provides employment to millions of people engaged in
various activities, such as packaging, storage and processing, transportation.
Persons like commission agents, brokers, traders, retailers, weigh men, Hamals etc. are
directly employed in the marketing system.

Better Living:
The agricultural marketing system is essential for the success of the development
programmes which are designed to uplift the population as a whole.

Adoption of New Technology:


It helps the farmers in the adoption of new scientific knowledge and technical skills.
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Addition to National Income:


Marketing activities add value to the product thereby increasing the nation’s gross national
product and net national product

Growth of Agro-based Industries:


An efficient agricultural marketing system helps in the growth of agro-based industries and
encourages overall development process of the economy.
Many industries like cotton, sugar, edible oils and food processing industries depend on
agriculture for the supply of raw material.

Increase in the Income of the Farms:


An efficient agricultural marketing system ensures higher levels of income for the farmers
by reducing the number of middlemen, restricting the cost of marketing and the
malpractices of farm products.
It guarantees the farmers better prices for farm products.

Creating of Utility:
Agricultural Marketing is as necessary as farm production.
In fact, it is, a part of production itself.
An efficient agricultural marketing system creates four types of utilities.
1. Farm utility – Processing function
2. Place utility – Storage
3. Time utility – Transportation
4. Possession utility – Buying and Selling
_________________________________________________________________________________________________________

Question: Describe the issues in agricultural marketing.


Answer:

Problems or Issues of Agricultural Marketing are as under:-

1. Lack of Warehousing Facilities


2. Lack of Grading & Standardization
3. Lack of Transport Facilities
4. Lack of Market Information
5. Lack of Credit Facilities
6. Large number of Middlemen
7. Malpractices in Unregulated Markets

Lack of Warehousing Facilities:


There is an absence of proper warehousing facilities in rural area or villages.
Therefore, the farmer is compelled to store his products in pits, mud-vessels, “Kutcha”
storehouses etc.
This lead to wastage of products and become unfit for human consumption.
Therefore supply increases in rural markets and farmers are not able to get fair price for
their produce.
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Lack of Grading & Standardization:


Different varieties of agricultural produce are not graded properly. Thus, the farmer
producing better qualities is not assured of a better price.

Lack of Transportation Facilities:


Transport facilities are highly inadequate in India. Only few villages are joined by railways
and concrete roads to mandies.
Produce has to be carried on slow moving transport vehicles such as bullock carts.
Obviously such means of transport cannot be used to carry produce to far place, and farmer
has to dump his produce in nearby markets even if the price is low.

Lack of Market Information:


It is often not possible for the farmers to obtain information on exact market prices in
different markets.
So they accept whatever price the traders offer to him. With a view to tackle this problem,
the government is using the television and media to broadcast market prices regularly.
The traders generally offer less than the price quoted by the government.

Lack of Credit Facilities:


Indian farmer, being poor, tries to sell the produce immediately after the crop is harvested
though prices at that time are very low.
The safeguard from such “forced sales” is to provide him credit facilities, so that he can wait
for better times and better prices.

Large number of Middlemen:


The chain of middlemen is the agricultural marketing is so large which leads to reduction in
share of farmers.
For instance, a study revealed, that farmers obtain only about 53% of the price of rice, 31%
being the share of middlemen and the remaining 16% being the marketing cost.

Malpractices in Unregulated Markets:


Even now the number of unregulated markets in the country is large and still exists.
Brokers taking advantage of the ignorance and illiteracy of farmers and using unfair means
to cheat them.
The farmers are required to pay
➢ Pledging charges
➢ Weight charges
➢ Unloading charges etc.
_________________________________________________________________________________________________________
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Question: Explain the features of Cooperative and Self Help Groups (SHG) in rural
marketing.
Answer:
It follows the principle of mutual help and self-help to facilitate rural development.

Every member joins co-operative society in order to provide support rather than earning
profits.

Features of Co-operative Society


1. A Separate Legal Entity
2. Voluntary Association
3. No Personal Motive
4. State Authority
5. Democratic Administration

A Separate Legal Entity:


It is registered under co-operative societies act, and after registration, the society gets
identified as a separate legal entity.

Voluntary Association:
The formation of such society is possible only when all members voluntarily take the
responsibility to make one.
Anyone with a common interest may join or create co-operative society.
Further, members can leave the association at any time after giving a notice in this regards.

No Personal Motive:
Co-operative societies works to achieve a common motive, members can’t have any
personal motive involved.
The main aim of co-operative societies is to provide services to members instead of earning
profits.

State Authority:
The government laws regulate all co-operative societies.
In India, a co-operative society is required to register itself under the State Co-operative
Societies Act.

Democratic Administration:
Co-operative societies conduct AGM (Annual General Meeting) every year where the
committee is elected and manages the affairs of the co-operative society.
_________________________________________________________________________________________________________
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Question: Explain the role of Commodity Boards.


Answer:
Commodity Boards operate under the Administrative Control of the Ministry of Commerce.
Their major role is:
1. To take active interest in production, development and exports of commodities.
2. To introduce new methods of cultivation of commodities.
3. To offer advice to the government on export matters such as fixing quota for exports
and significant trade agreements.

4. To provide trade information, guidance and various other services to their members
and help them in their export business.
5. To participate in trade fairs and exhibitions abroad.
6. To sponsor trade delegations and conduct market surveys.

7. To arrange pre-shipment inspection for export items.


_________________________________________________________________________________________________________

Question: Discuss the role of APEDA.


Answer:
The Agricultural and Processed Food Products Export Development Authority of India
(APEDA), was established by the Govt. of India under the Agricultural and Processed Food
Products Export Development Authority Act, passed by the parliament in December, 1985.

The Act came into effect from 13th February 1986 by the notification issued in the Gazette of
India: Extraordinary Part – II.

The authority replaced the Processed Food Export Promotion Council (PFEPC).
Following are the functions of APEDA:

➢ Development of industries by way of providing financial assistance for scheduled


products related to exports.

➢ Registration of person as exporter, of the scheduled products on payment of such


fees as may be prescribed.

➢ Fixing of standards and specifications for the scheduled products for the purpose of
exports.
➢ Carrying out inspection of meat and meat products in slaughter houses, processing
plants, storage premises, or other places where such products are kept for the
purpose of ensuring the quality of such products.

➢ Improving the packaging of the scheduled products;


➢ Improving the marketing of the scheduled products outside India.

➢ Training in various aspects of the industries connected with the scheduled products;
such other matters as may be prescribed.
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APEDA is mandatory with the responsibility of export promotion and development of the
following scheduled products:
➢ Fruits Vegetables and their Products
➢ Meat and Meat Products
➢ Poultry and Poultry Products

➢ Dairy Products
➢ Confectionary, Biscuits and Bakery Products
➢ Honey, Jaggery and Sugar Products

➢ Alcoholic and Non-Alcoholic Beverages


➢ Chocolates of all kinds
➢ Cereal and Cereal Products

➢ Groundnuts, Peanuts, and Walnuts


➢ Pickles, Papads, and Chutneys
➢ Floriculture and Floriculture Products

➢ Herbal and Medicinal Plants


➢ De-oiled rice bran
➢ Green pepper in brine
Basmati Rice has been included in the Second Schedule of APEDA Act.

In addition to this, APEDA has been entrusted with the responsibility of monitoring the
import of sugar as well.
_________________________________________________________________________________________________________

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