PRESENTATION OF RURAL MARKETING

Submitted To, Prof. Mukesh Ranga

Submitted By, Monica Kalwani Neelam Pandey Archna Verma MBA (B.E.) 3rd sem. (2011-2013) IBM,CSJMU Kanpur.

CO-OPERATIVE MARKETING

LIST OF CONTENTS
Co-operative Marketing Co-perative Marketing in India Co-operative Societies in Agriculture 4-25

27-40

42-51

According to RBI
Co-operative Marketing is a cooperative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably, than is possible through trade.

Objective
To secure best possible market price for members products To reduce the cost of marketing To act as a powerful check upon the monopolistic power To save farmers from exploitation Protection of consumers interest

Need and Importance

Abolition of Middlemen Collective Bargaining Storage Facility Standardization and Grading

Need and Importance

Higher prices to members Large and wide Infrastructure Supply inputs & Consumer goods Relief from illegal deduction

Advantages
Provides easy and cheap credit Offers Collective bargaining to farmers Help reduce price spread

Advantages
It links, integrate and streamline production, processing and marketing Guarantees of a fair return

Business Operations

1.Commission Business 2.Outright Purchase 3.Advance Against Stock 4.Pooling 5.Grading

Business Operations
6.Processing 7.Procurement 8.Supply of Inputs to Agriculture 9.Distribution Of Consumers Goods 10.Services 11.Export

Business Operations
1.Commission Business -The marketing society acts as the agent between the farmers and the traders.

Business Operations
2.Outright Purchase - The marketing society purchases the farmers produce outright by making them payments immediately.

Business Operations
3.Advance Against Stock
- The marketing co-operative helps farmer by allowing them to store their product with it for which they receive advance payments.

Business Operations
4.Pooling - In this type, farmers produce is assembled and sold in one lot instead of selling on an individual basis by the farmers.

Business Operations
5.Grading - The farmer is motivated to raise its product quality, for which he is rewarded with better returns.

Business Operations
6.Processing - The marketing society take up the work of processing the commodities and make them fit for consumption.

Business Operations
7.Procurement - On behalf of the government, the marketing society may take up the procuring agricultural produce from the farmers to ensure their products with the minimum support price fixed by the government.

Business Operations
8.Supply of Inputs to Agriculture - The members are provided with the inputs necessary for better cultivation.

Business Operations
9.Distribution Of Consumers Goods - The marketing society supplies essential goods at reasonable prices, in areas where viable consumer cooperatives do not exist.

Business Operations
10.Services
- The marketing co-operative provides its members with storage and transport facility.

Business Operations
11.Export

- If there is foreign demand then the society arranges for export through its higher marketing organization.

Co-operative- Marketing

In INDIA

Scope
1.The average farmer in India is illiterate and poor is prone to exploitation And does not have adequate storage facilities.

Scope

2.The transportation network in our country is not well developed.

Structure Of

Co-operative Marketing

NAFED State Co-operative Marketing Federation District Marketing Co-operative Society

Primary Marketing Co-operative Society

Dr. Bijender Singh, MLA, Chairman, NAFED

NAFED
National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established on the auspicious day of Gandhi Jayanti on 2nd October 1958. Nafed is registered under the Multi State Co-operative Societies Act. Nafed was setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers. Agricultural farmers are the main members of Nafed, who have the authority to say in the form of members of the General Body in the working of Nafed.

Source of Finance

Marketing societies raise their finance by Issuing Shares The State Govt. purchases half the number of shares.

Source of Finance
Raising Loans Loans are raised from 1.The Central Co-operative Bank

2.The National Co-operative

3.Development Corporation

Source of Finance
4.The National Agricultural Cooperative Marketing Federation
5.The State Bank of India

6.The Marketing Board

Failure of Marketing Cooperatives in India

They do not have sufficient storage space.

The loaning policies has been faulty. Their operational costs are high.
Their staffs are untrained.

Reasons behind Failure

1.Farmers are indifferent to Cooperatives 2.Marketing co-operatives do not have a well thought out programme of action in regard to the conduct of different marketing activities

Reasons behind Failure

3.There is no proper link between Primary Marketing Co-operatives and State Marketing Federation, Primary Marketing Societies and Primary Credit Societies 4.The managing committees of most marketing societies do not take keen interest in conduct of their business.

Reasons behind Failure

5.The marketing societies provide only few marketing services such as processing, to the farmers

6.Marketing societies suffer from lack of sufficient working capital.

Measures for Improvement

1.Effective relationship between marketing and credit societies. 2.Primary Marketing Societies should be member of the State Marketing Federation. 3.The marketing societies must work out the detailed plans best suited to their local conditions.

Measures for Improvement

4.The management committee should be wisely elected to ensure effective functioning. 5.The Central and State Government must help the societies to build proper storage places.

Measures for Improvement

6.Grading and standardization must be done by experts hired by marketing society. 7.The Government must offer adequate financial assistance to marketing societies

CO-OPERATIVSOCIETIES IN AGRICULTURE

PRIMARY AGRICULTURE COOPERATIVESOCIETIES

An agricultural cooperative society, also known as a farmers' co-op, is a cooperative where farmers pool their resources in certain areas of activity. Agricultural production cooperatives are relatively rare in the world, and known examples are limited to collective farms in former socialist countries

PRIMARY AGRICULTURE COOPERATIVESOCIETIES

Marketing cooperatives are established by farmers to undertake transformation, packaging, distribution, and marketing of farm products The co-operatives societies have madean allround progress and their role in, and contribution to agricultural progress has particularly been significant.

INTRODUCTION OF CO-OPERATIVE MOVEMENT

The Co-operative Movement was introduced into India by the Government. The Co-operative Credit Societies Act, 1904 was passed by the Governmentof India and rural credit societies were formed. Within a short period, the Government realized that there are some shortcomings of the 1904 Act and, therefore, passed a more comprehensive Act, known as theCo-operative Societies Act of 1912

FEATURES

1.PRIMARY AGRICULTURAL CREDIT SOCIETIES Assessment of credit needs Disbursement of credit to members Recovery of credit Promote the economic interests of the members

2 DISTRICT CENTRAL COOPERATIVE BANKS Serve as balancing centre in the district central financing agencies Organise credit to primaries Carry out banking business Sanction , monitor & control implementation of policies

4. NATIONAL FEDERATION OF STATE COOPERATIVE BANKS Provides a common forum to the member banks Promotes and protects the interests of the member banks Co-ordinates and liaison with government of India,

5. RESERVE BANK OF INDIA , NATIONAL BANK AND OTHERS Provides research and consultancy inputs to the member banks Organizesconferences/seminars/ workshops/meetings

TYPES OF SOCIETIES
Co-operative Weaver's society Co-operative Consumer's Societies Co-operative Housing Societies Co-operative Women's Societies Co-operative Milk-Societies

CHALLENGES BEFORE CO-OPERATIVES

Co-operatives have covered 100% of villages and 67% of rural households. Co-operative sector contributes 50% of total agricultural credit and distributes 35% of total fertilizer consumption in the Country. They are procuring 60% of total sugar-cane. They are also playing crucial role in the agroprocessing sector i.e. processing of sugarcane, milk, cotton and oil seeds etc.

CHALLENGES BEFORE CO-OPERATIVES

There are about 5.5 lakhs of cooperative Societies with membership of more than 22crores. It covers a wide range of commercial activities and nearly 50% of them are engaged in agriculture and agriculture related matters. Nearly 70% of the Indian population being dependant on agriculture, is thus, connected with agricultural Co-operatives.

REFERENCE
www.universityessays.com Wikipedia Various slides on internet

QUIZ ROUND
1.Full form of NAFED and who is Chairman of it. 2.Tell any three business operations in co-operative marketing. 3. Co-operative Credit Society Act was passed in year.