Unit 4
Marketing of Agricultural Produce
Q1) How agricultural Marketing continues to be the mainstay of life for majority of the Indian population?
A1) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
Q2) Explain the advent of regulated market.
A2) Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Q3) How is the agriculture marketing in today’s generation?
A3) Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
Q4) In India, what are the central government organisations, who are involved in agricultural marketing?
A4) In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Q5) What are the challenges in marketing of agriculture produce?
A5) The challenges for rural farmer are: a). Inadequate storage facility of food grains, b) Improper transportation c) Packaging facility problem, d) Cold storage facility problem etc., Inefficiency in the wholesale markets result in a long chain of intermediaries, multiple handling, loss of quality and increase in the gap between the producer and consumer prices. A large number of small retailers, each handling small quantities, create high overheads leading to a high marketing margin on the produce. The purpose of regulation of agricultural markets was to protect farmers from the exploitation of intermediaries and traders and also to ensure better prices and timely payment for the produce. However, due to lack of development of an appropriate market infrastructure in tandem with changes in production, intermediation has tended to continue resulting in post-harvest losses at every stage thereby reducing the farmer’s share in consumer’s price. There is a strong need for providing an appropriate backward and forward integration to producers for ensuring primary value additions to the produce and enhance quality.
Q6) What are the marketing strategies for the development of rural artisan sector?
A6) Every State in India makes and markets unique, creative handicrafts, which provide an identity to the region. The handicrafts business has a history that dates back to the Indus Valley Civilisation. While handicrafts have always been an important part of India’s export basket, the last three years, in particular, have seen a big jump in exports.
Exports during 2011-12, which were at $1,830 million, increased to $2,301 million in 2012-13 and to $4,537 million in 2014-15. According to the Centre, India exports more than 25 per cent of its handicrafts to the US, followed by the UK and the UAE, with 9 per cent each as of financial year 2014-15.
The Export Promotion Council for Handicrafts (EPCH), a government-funded organisation that finances promotional activities regarding the handicrafts industry, is focussed on developing cost-effective strategies to promote the country’s handicrafts businesses and craftsperson’s. Both the Centre and State governments are using digital marketing and e-commerce to promote the items. Some sellers have found these initiatives useful and have notched up significant business growth. Similarly, there are a number of regional vendors who promote the handicrafts of different States on their websites.
Based on our interactions with different stakeholders, we think the Central and State governments could take certain measures to promote handicrafts.
— Revival of the Postal Department and using its vast reach by leveraging its logistics and supply chain management capabilities. An MoU with the Postal Department will help cut the time from procurement to delivery of products.
— New payment options must be provided to the end customers. The option of selling handicraft products through the Postal Department website could be explored.
— E-commerce portals should charge less and/or waive administrative charges for handicraft product sellers.
— Offer advice on potential tax transactions, legal compliance and quality requirements.
— Provide subsidy electricity/assistance in purchase of, say, solar panels, especially for weavers, who work in shifts.
It is further recommended that the following can be initiated:
— Educate artisans and buyers on the need and importance of certification and quality standards for each category of handicrafts.
— Improve packaging and transportation of products.
— Training and development with a scientific approach to designing new products and to help craftsperson’s stay relevant to changing market needs.
— Handicrafts should be promoted as a concept, bundled with pride in the country’s artists, rather than just sold as a product.
Q7) State the cultural and economic importance of Indian handicrafts industry.
A7) Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings.
Q8) State the importance of handicrafts due to their cultural and financial values.
A8) During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
Q9) How Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry?
A9) The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
Q10) Explain why the Handicraft sector is highly creative sector?
A10) The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
Q11) What are the characteristics of Indian Handicraft industry?
A11) The characteristics of Indian Handicraft industry are-
- The Cultural Importance: Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
- The Economic Importance: Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings
- India is a country of rich culture, history and traditions. India is one of the major producer and supplier of Handicrafts products in the world. India has been major producer and supplier of handicrafts products since very long time. Before the industrial development, this art and industry was a potential economic advantage for the country.
- During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
- The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
- The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
- Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one of the major revenue generators over the years. There has been consistent growth of 15% over few years and the industry has evolved as one of the major contributors for export and foreign revenue generation.
- There is huge demand for the Indian Handicraft products in both national and international market. To match the demand and supply with quality, there is need to have greater technological support and innovativeness with the uniqueness in industry.
Q12) What is Organic farming?
A12) Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Q13) What do you mean by Farmer’s markets?
A13) Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Q14) What is a food hub?
A14) A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Q15) What is Community-Supported Agriculture?
A15) Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q16) What are Marketing of rural artisan products?
A16) Marketing of rural artisan products are-
Spreading awareness about rural art and craft
Businesses can use their online presence to spread awareness about the lost traditional artistry and craftsmanship. Through blogs and marketing, we can educate our customers about different forms of art and craft from different regions of our country. For example, Thanjavur Art, which is a classical South Indian style of painting, Banarasi sarees made in Varanasi, woven with intricate gold and silver zari work, the chikan art of Lucknow, pottery of Uttar Pradesh and Rajasthan, etc.
Offering e-commerce platforms to sell their products
With the power of technology, a small seller can now showcase their products worldwide. Through e-commerce platforms, the artisans, and craftsmen, can sell their fine work products to a large number of customers while operating comfortably from their hometowns. The craftsmanship of India can gain global reach and demand, increasing the revenue of the country and improving the lives of many rural artisans.
Reinvesting in rural artisans and craftsmanship
If you travel to small villages, you will find immense beauty and uniqueness in the local artistry of that region. By reinvesting capital in rural artisans and craftsmen we can preserve the traditional art culture and talent of India. This investment will also help the rural artisans to kickstart their lost careers, and India’s exquisite artistry will gain the long due recognition and popularity it deserves.
Conducting workshops and skill development programmes for artisans
By organizing and conducting skill development programmes and workshops, we can help the artisans learn modern art techniques that can be applied to traditional methods to increase their expertise and competence. Such programmes are necessary to upgrade the skills of rural artisans to today’s standards.
Helping artisans set up their businesses
Apart from financial and technical help, there is a lot that business owners can do to educate artisans. Since the majority of local artists operate in informal work settings and are not familiar with how to run a business, we can provide information, knowledge and guidance that can truly help artisans create a career and income source for themselves. By providing both offline and online work set-ups, we can increase the exposure of traditional art and craft forms within the country and globally as well.
To preserve the ancient culture, artistry, and heritage of our country, we should scale up the local art and handmade products created by skilled artisans. Through online presence and business marketing, let us join hands in bringing light to the wonderful culture of our country. Only by ensuring and providing opportunities in the local and rural communities can we grow the industry and retain the traditional art and hidden talents of Indian craftsmen.
Q17) What are the strategies to promote marketing of agricultural produce?
A17) The strategies to promote marketing of agricultural produce are-
Organic Farming
Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Farmers' Markets
Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Food Hubs
A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Community-Supported Agriculture
Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q18) Explain Profiling of Indian agricultural produces marketing.
A18) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
The government also promotes organised marketing of agricultural commodities in the country through a network of regulated markets. There are 7161 Wholesale Regulated Markets in the country as on 31.3.2001. Besides, there are also 7293 Wholesale Markets and 27,294 Rural Periodic.
The advent of regulated markets Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Q19) Explain Agricultural Produce (grading and marketing) Act of 1937.
A19) Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
Q20) Explain the survey undertaken by the directorate of marketing and inspection in the ministry of agriculture.
A20) There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Unit 4
Marketing of Agricultural Produce
Q1) How agricultural Marketing continues to be the mainstay of life for majority of the Indian population?
A1) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
Q2) Explain the advent of regulated market.
A2) Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Q3) How is the agriculture marketing in today’s generation?
A3) Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
Q4) In India, what are the central government organisations, who are involved in agricultural marketing?
A4) In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Q5) What are the challenges in marketing of agriculture produce?
A5) The challenges for rural farmer are: a). Inadequate storage facility of food grains, b) Improper transportation c) Packaging facility problem, d) Cold storage facility problem etc., Inefficiency in the wholesale markets result in a long chain of intermediaries, multiple handling, loss of quality and increase in the gap between the producer and consumer prices. A large number of small retailers, each handling small quantities, create high overheads leading to a high marketing margin on the produce. The purpose of regulation of agricultural markets was to protect farmers from the exploitation of intermediaries and traders and also to ensure better prices and timely payment for the produce. However, due to lack of development of an appropriate market infrastructure in tandem with changes in production, intermediation has tended to continue resulting in post-harvest losses at every stage thereby reducing the farmer’s share in consumer’s price. There is a strong need for providing an appropriate backward and forward integration to producers for ensuring primary value additions to the produce and enhance quality.
Q6) What are the marketing strategies for the development of rural artisan sector?
A6) Every State in India makes and markets unique, creative handicrafts, which provide an identity to the region. The handicrafts business has a history that dates back to the Indus Valley Civilisation. While handicrafts have always been an important part of India’s export basket, the last three years, in particular, have seen a big jump in exports.
Exports during 2011-12, which were at $1,830 million, increased to $2,301 million in 2012-13 and to $4,537 million in 2014-15. According to the Centre, India exports more than 25 per cent of its handicrafts to the US, followed by the UK and the UAE, with 9 per cent each as of financial year 2014-15.
The Export Promotion Council for Handicrafts (EPCH), a government-funded organisation that finances promotional activities regarding the handicrafts industry, is focussed on developing cost-effective strategies to promote the country’s handicrafts businesses and craftsperson’s. Both the Centre and State governments are using digital marketing and e-commerce to promote the items. Some sellers have found these initiatives useful and have notched up significant business growth. Similarly, there are a number of regional vendors who promote the handicrafts of different States on their websites.
Based on our interactions with different stakeholders, we think the Central and State governments could take certain measures to promote handicrafts.
— Revival of the Postal Department and using its vast reach by leveraging its logistics and supply chain management capabilities. An MoU with the Postal Department will help cut the time from procurement to delivery of products.
— New payment options must be provided to the end customers. The option of selling handicraft products through the Postal Department website could be explored.
— E-commerce portals should charge less and/or waive administrative charges for handicraft product sellers.
— Offer advice on potential tax transactions, legal compliance and quality requirements.
— Provide subsidy electricity/assistance in purchase of, say, solar panels, especially for weavers, who work in shifts.
It is further recommended that the following can be initiated:
— Educate artisans and buyers on the need and importance of certification and quality standards for each category of handicrafts.
— Improve packaging and transportation of products.
— Training and development with a scientific approach to designing new products and to help craftsperson’s stay relevant to changing market needs.
— Handicrafts should be promoted as a concept, bundled with pride in the country’s artists, rather than just sold as a product.
Q7) State the cultural and economic importance of Indian handicrafts industry.
A7) Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings.
Q8) State the importance of handicrafts due to their cultural and financial values.
A8) During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
Q9) How Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry?
A9) The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
Q10) Explain why the Handicraft sector is highly creative sector?
A10) The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
Q11) What are the characteristics of Indian Handicraft industry?
A11) The characteristics of Indian Handicraft industry are-
- The Cultural Importance: Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
- The Economic Importance: Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings
- India is a country of rich culture, history and traditions. India is one of the major producer and supplier of Handicrafts products in the world. India has been major producer and supplier of handicrafts products since very long time. Before the industrial development, this art and industry was a potential economic advantage for the country.
- During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
- The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
- The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
- Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one of the major revenue generators over the years. There has been consistent growth of 15% over few years and the industry has evolved as one of the major contributors for export and foreign revenue generation.
- There is huge demand for the Indian Handicraft products in both national and international market. To match the demand and supply with quality, there is need to have greater technological support and innovativeness with the uniqueness in industry.
Q12) What is Organic farming?
A12) Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Q13) What do you mean by Farmer’s markets?
A13) Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Q14) What is a food hub?
A14) A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Q15) What is Community-Supported Agriculture?
A15) Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q16) What are Marketing of rural artisan products?
A16) Marketing of rural artisan products are-
Spreading awareness about rural art and craft
Businesses can use their online presence to spread awareness about the lost traditional artistry and craftsmanship. Through blogs and marketing, we can educate our customers about different forms of art and craft from different regions of our country. For example, Thanjavur Art, which is a classical South Indian style of painting, Banarasi sarees made in Varanasi, woven with intricate gold and silver zari work, the chikan art of Lucknow, pottery of Uttar Pradesh and Rajasthan, etc.
Offering e-commerce platforms to sell their products
With the power of technology, a small seller can now showcase their products worldwide. Through e-commerce platforms, the artisans, and craftsmen, can sell their fine work products to a large number of customers while operating comfortably from their hometowns. The craftsmanship of India can gain global reach and demand, increasing the revenue of the country and improving the lives of many rural artisans.
Reinvesting in rural artisans and craftsmanship
If you travel to small villages, you will find immense beauty and uniqueness in the local artistry of that region. By reinvesting capital in rural artisans and craftsmen we can preserve the traditional art culture and talent of India. This investment will also help the rural artisans to kickstart their lost careers, and India’s exquisite artistry will gain the long due recognition and popularity it deserves.
Conducting workshops and skill development programmes for artisans
By organizing and conducting skill development programmes and workshops, we can help the artisans learn modern art techniques that can be applied to traditional methods to increase their expertise and competence. Such programmes are necessary to upgrade the skills of rural artisans to today’s standards.
Helping artisans set up their businesses
Apart from financial and technical help, there is a lot that business owners can do to educate artisans. Since the majority of local artists operate in informal work settings and are not familiar with how to run a business, we can provide information, knowledge and guidance that can truly help artisans create a career and income source for themselves. By providing both offline and online work set-ups, we can increase the exposure of traditional art and craft forms within the country and globally as well.
To preserve the ancient culture, artistry, and heritage of our country, we should scale up the local art and handmade products created by skilled artisans. Through online presence and business marketing, let us join hands in bringing light to the wonderful culture of our country. Only by ensuring and providing opportunities in the local and rural communities can we grow the industry and retain the traditional art and hidden talents of Indian craftsmen.
Q17) What are the strategies to promote marketing of agricultural produce?
A17) The strategies to promote marketing of agricultural produce are-
Organic Farming
Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Farmers' Markets
Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Food Hubs
A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Community-Supported Agriculture
Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q18) Explain Profiling of Indian agricultural produces marketing.
A18) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
The government also promotes organised marketing of agricultural commodities in the country through a network of regulated markets. There are 7161 Wholesale Regulated Markets in the country as on 31.3.2001. Besides, there are also 7293 Wholesale Markets and 27,294 Rural Periodic.
The advent of regulated markets Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Q19) Explain Agricultural Produce (grading and marketing) Act of 1937.
A19) Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
Q20) Explain the survey undertaken by the directorate of marketing and inspection in the ministry of agriculture.
A20) There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Unit 4
Marketing of Agricultural Produce
Q1) How agricultural Marketing continues to be the mainstay of life for majority of the Indian population?
A1) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
Q2) Explain the advent of regulated market.
A2) Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Q3) How is the agriculture marketing in today’s generation?
A3) Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
Q4) In India, what are the central government organisations, who are involved in agricultural marketing?
A4) In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Q5) What are the challenges in marketing of agriculture produce?
A5) The challenges for rural farmer are: a). Inadequate storage facility of food grains, b) Improper transportation c) Packaging facility problem, d) Cold storage facility problem etc., Inefficiency in the wholesale markets result in a long chain of intermediaries, multiple handling, loss of quality and increase in the gap between the producer and consumer prices. A large number of small retailers, each handling small quantities, create high overheads leading to a high marketing margin on the produce. The purpose of regulation of agricultural markets was to protect farmers from the exploitation of intermediaries and traders and also to ensure better prices and timely payment for the produce. However, due to lack of development of an appropriate market infrastructure in tandem with changes in production, intermediation has tended to continue resulting in post-harvest losses at every stage thereby reducing the farmer’s share in consumer’s price. There is a strong need for providing an appropriate backward and forward integration to producers for ensuring primary value additions to the produce and enhance quality.
Q6) What are the marketing strategies for the development of rural artisan sector?
A6) Every State in India makes and markets unique, creative handicrafts, which provide an identity to the region. The handicrafts business has a history that dates back to the Indus Valley Civilisation. While handicrafts have always been an important part of India’s export basket, the last three years, in particular, have seen a big jump in exports.
Exports during 2011-12, which were at $1,830 million, increased to $2,301 million in 2012-13 and to $4,537 million in 2014-15. According to the Centre, India exports more than 25 per cent of its handicrafts to the US, followed by the UK and the UAE, with 9 per cent each as of financial year 2014-15.
The Export Promotion Council for Handicrafts (EPCH), a government-funded organisation that finances promotional activities regarding the handicrafts industry, is focussed on developing cost-effective strategies to promote the country’s handicrafts businesses and craftsperson’s. Both the Centre and State governments are using digital marketing and e-commerce to promote the items. Some sellers have found these initiatives useful and have notched up significant business growth. Similarly, there are a number of regional vendors who promote the handicrafts of different States on their websites.
Based on our interactions with different stakeholders, we think the Central and State governments could take certain measures to promote handicrafts.
— Revival of the Postal Department and using its vast reach by leveraging its logistics and supply chain management capabilities. An MoU with the Postal Department will help cut the time from procurement to delivery of products.
— New payment options must be provided to the end customers. The option of selling handicraft products through the Postal Department website could be explored.
— E-commerce portals should charge less and/or waive administrative charges for handicraft product sellers.
— Offer advice on potential tax transactions, legal compliance and quality requirements.
— Provide subsidy electricity/assistance in purchase of, say, solar panels, especially for weavers, who work in shifts.
It is further recommended that the following can be initiated:
— Educate artisans and buyers on the need and importance of certification and quality standards for each category of handicrafts.
— Improve packaging and transportation of products.
— Training and development with a scientific approach to designing new products and to help craftsperson’s stay relevant to changing market needs.
— Handicrafts should be promoted as a concept, bundled with pride in the country’s artists, rather than just sold as a product.
Q7) State the cultural and economic importance of Indian handicrafts industry.
A7) Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings.
Q8) State the importance of handicrafts due to their cultural and financial values.
A8) During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
Q9) How Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry?
A9) The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
Q10) Explain why the Handicraft sector is highly creative sector?
A10) The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
Q11) What are the characteristics of Indian Handicraft industry?
A11) The characteristics of Indian Handicraft industry are-
- The Cultural Importance: Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
- The Economic Importance: Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings
- India is a country of rich culture, history and traditions. India is one of the major producer and supplier of Handicrafts products in the world. India has been major producer and supplier of handicrafts products since very long time. Before the industrial development, this art and industry was a potential economic advantage for the country.
- During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
- The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
- The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
- Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one of the major revenue generators over the years. There has been consistent growth of 15% over few years and the industry has evolved as one of the major contributors for export and foreign revenue generation.
- There is huge demand for the Indian Handicraft products in both national and international market. To match the demand and supply with quality, there is need to have greater technological support and innovativeness with the uniqueness in industry.
Q12) What is Organic farming?
A12) Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Q13) What do you mean by Farmer’s markets?
A13) Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Q14) What is a food hub?
A14) A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Q15) What is Community-Supported Agriculture?
A15) Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q16) What are Marketing of rural artisan products?
A16) Marketing of rural artisan products are-
Spreading awareness about rural art and craft
Businesses can use their online presence to spread awareness about the lost traditional artistry and craftsmanship. Through blogs and marketing, we can educate our customers about different forms of art and craft from different regions of our country. For example, Thanjavur Art, which is a classical South Indian style of painting, Banarasi sarees made in Varanasi, woven with intricate gold and silver zari work, the chikan art of Lucknow, pottery of Uttar Pradesh and Rajasthan, etc.
Offering e-commerce platforms to sell their products
With the power of technology, a small seller can now showcase their products worldwide. Through e-commerce platforms, the artisans, and craftsmen, can sell their fine work products to a large number of customers while operating comfortably from their hometowns. The craftsmanship of India can gain global reach and demand, increasing the revenue of the country and improving the lives of many rural artisans.
Reinvesting in rural artisans and craftsmanship
If you travel to small villages, you will find immense beauty and uniqueness in the local artistry of that region. By reinvesting capital in rural artisans and craftsmen we can preserve the traditional art culture and talent of India. This investment will also help the rural artisans to kickstart their lost careers, and India’s exquisite artistry will gain the long due recognition and popularity it deserves.
Conducting workshops and skill development programmes for artisans
By organizing and conducting skill development programmes and workshops, we can help the artisans learn modern art techniques that can be applied to traditional methods to increase their expertise and competence. Such programmes are necessary to upgrade the skills of rural artisans to today’s standards.
Helping artisans set up their businesses
Apart from financial and technical help, there is a lot that business owners can do to educate artisans. Since the majority of local artists operate in informal work settings and are not familiar with how to run a business, we can provide information, knowledge and guidance that can truly help artisans create a career and income source for themselves. By providing both offline and online work set-ups, we can increase the exposure of traditional art and craft forms within the country and globally as well.
To preserve the ancient culture, artistry, and heritage of our country, we should scale up the local art and handmade products created by skilled artisans. Through online presence and business marketing, let us join hands in bringing light to the wonderful culture of our country. Only by ensuring and providing opportunities in the local and rural communities can we grow the industry and retain the traditional art and hidden talents of Indian craftsmen.
Q17) What are the strategies to promote marketing of agricultural produce?
A17) The strategies to promote marketing of agricultural produce are-
Organic Farming
Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Farmers' Markets
Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Food Hubs
A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Community-Supported Agriculture
Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q18) Explain Profiling of Indian agricultural produces marketing.
A18) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
The government also promotes organised marketing of agricultural commodities in the country through a network of regulated markets. There are 7161 Wholesale Regulated Markets in the country as on 31.3.2001. Besides, there are also 7293 Wholesale Markets and 27,294 Rural Periodic.
The advent of regulated markets Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Q19) Explain Agricultural Produce (grading and marketing) Act of 1937.
A19) Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
Q20) Explain the survey undertaken by the directorate of marketing and inspection in the ministry of agriculture.
A20) There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Unit 4
Marketing of Agricultural Produce
Q1) How agricultural Marketing continues to be the mainstay of life for majority of the Indian population?
A1) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
Q2) Explain the advent of regulated market.
A2) Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Q3) How is the agriculture marketing in today’s generation?
A3) Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
Q4) In India, what are the central government organisations, who are involved in agricultural marketing?
A4) In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Q5) What are the challenges in marketing of agriculture produce?
A5) The challenges for rural farmer are: a). Inadequate storage facility of food grains, b) Improper transportation c) Packaging facility problem, d) Cold storage facility problem etc., Inefficiency in the wholesale markets result in a long chain of intermediaries, multiple handling, loss of quality and increase in the gap between the producer and consumer prices. A large number of small retailers, each handling small quantities, create high overheads leading to a high marketing margin on the produce. The purpose of regulation of agricultural markets was to protect farmers from the exploitation of intermediaries and traders and also to ensure better prices and timely payment for the produce. However, due to lack of development of an appropriate market infrastructure in tandem with changes in production, intermediation has tended to continue resulting in post-harvest losses at every stage thereby reducing the farmer’s share in consumer’s price. There is a strong need for providing an appropriate backward and forward integration to producers for ensuring primary value additions to the produce and enhance quality.
Q6) What are the marketing strategies for the development of rural artisan sector?
A6) Every State in India makes and markets unique, creative handicrafts, which provide an identity to the region. The handicrafts business has a history that dates back to the Indus Valley Civilisation. While handicrafts have always been an important part of India’s export basket, the last three years, in particular, have seen a big jump in exports.
Exports during 2011-12, which were at $1,830 million, increased to $2,301 million in 2012-13 and to $4,537 million in 2014-15. According to the Centre, India exports more than 25 per cent of its handicrafts to the US, followed by the UK and the UAE, with 9 per cent each as of financial year 2014-15.
The Export Promotion Council for Handicrafts (EPCH), a government-funded organisation that finances promotional activities regarding the handicrafts industry, is focussed on developing cost-effective strategies to promote the country’s handicrafts businesses and craftsperson’s. Both the Centre and State governments are using digital marketing and e-commerce to promote the items. Some sellers have found these initiatives useful and have notched up significant business growth. Similarly, there are a number of regional vendors who promote the handicrafts of different States on their websites.
Based on our interactions with different stakeholders, we think the Central and State governments could take certain measures to promote handicrafts.
— Revival of the Postal Department and using its vast reach by leveraging its logistics and supply chain management capabilities. An MoU with the Postal Department will help cut the time from procurement to delivery of products.
— New payment options must be provided to the end customers. The option of selling handicraft products through the Postal Department website could be explored.
— E-commerce portals should charge less and/or waive administrative charges for handicraft product sellers.
— Offer advice on potential tax transactions, legal compliance and quality requirements.
— Provide subsidy electricity/assistance in purchase of, say, solar panels, especially for weavers, who work in shifts.
It is further recommended that the following can be initiated:
— Educate artisans and buyers on the need and importance of certification and quality standards for each category of handicrafts.
— Improve packaging and transportation of products.
— Training and development with a scientific approach to designing new products and to help craftsperson’s stay relevant to changing market needs.
— Handicrafts should be promoted as a concept, bundled with pride in the country’s artists, rather than just sold as a product.
Q7) State the cultural and economic importance of Indian handicrafts industry.
A7) Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings.
Q8) State the importance of handicrafts due to their cultural and financial values.
A8) During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
Q9) How Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry?
A9) The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
Q10) Explain why the Handicraft sector is highly creative sector?
A10) The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
Q11) What are the characteristics of Indian Handicraft industry?
A11) The characteristics of Indian Handicraft industry are-
- The Cultural Importance: Handicrafts play very important role in representing the culture and traditions of any country or region. Handicrafts are a substantial medium to preserve of rich traditional art, heritage and culture, traditional skills and talents which are associated with people’s lifestyle and history.
- The Economic Importance: Handicrafts are hugely important in terms of economic development. They provide ample opportunities for employment even with low capital investments and become a prominent medium for foreign earnings
- India is a country of rich culture, history and traditions. India is one of the major producer and supplier of Handicrafts products in the world. India has been major producer and supplier of handicrafts products since very long time. Before the industrial development, this art and industry was a potential economic advantage for the country.
- During recent years, the importance of handicrafts has been surged due to their cultural and financial values. The small-scale industries – including handicrafts can play a major role in the development of the economy of both developed and the developing countries equally. The 90-95% of the total industrial products of the world are produced in small workshops run by less than 100 people. For instance, Japan, which is at the peak of the economic development, has considered 84% of the its industries as small and medium scale industries. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume, and are a major source of their foreign earnings. These countries are focusing on the development of handicraft industry, in order to strengthen the economy.
- The Indian handicrafts industry is highly labour intensive, cottage based and decentralized industry. The industry is spread all over the country mainly in rural and urban areas. Most of the manufacturing units are located in rural and small towns, and there is huge market potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural communities employing over six million artisans including a large number of women and people belonging to the weaker sections of the society.
- The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized segment of the domestic and international market. In India the production of craft products is done on both large and small scale. Because of low capital investment people can start their business on small scale. Through this flexibility the demand and supply can be managed.
- Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one of the major revenue generators over the years. There has been consistent growth of 15% over few years and the industry has evolved as one of the major contributors for export and foreign revenue generation.
- There is huge demand for the Indian Handicraft products in both national and international market. To match the demand and supply with quality, there is need to have greater technological support and innovativeness with the uniqueness in industry.
Q12) What is Organic farming?
A12) Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Q13) What do you mean by Farmer’s markets?
A13) Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Q14) What is a food hub?
A14) A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Q15) What is Community-Supported Agriculture?
A15) Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q16) What are Marketing of rural artisan products?
A16) Marketing of rural artisan products are-
Spreading awareness about rural art and craft
Businesses can use their online presence to spread awareness about the lost traditional artistry and craftsmanship. Through blogs and marketing, we can educate our customers about different forms of art and craft from different regions of our country. For example, Thanjavur Art, which is a classical South Indian style of painting, Banarasi sarees made in Varanasi, woven with intricate gold and silver zari work, the chikan art of Lucknow, pottery of Uttar Pradesh and Rajasthan, etc.
Offering e-commerce platforms to sell their products
With the power of technology, a small seller can now showcase their products worldwide. Through e-commerce platforms, the artisans, and craftsmen, can sell their fine work products to a large number of customers while operating comfortably from their hometowns. The craftsmanship of India can gain global reach and demand, increasing the revenue of the country and improving the lives of many rural artisans.
Reinvesting in rural artisans and craftsmanship
If you travel to small villages, you will find immense beauty and uniqueness in the local artistry of that region. By reinvesting capital in rural artisans and craftsmen we can preserve the traditional art culture and talent of India. This investment will also help the rural artisans to kickstart their lost careers, and India’s exquisite artistry will gain the long due recognition and popularity it deserves.
Conducting workshops and skill development programmes for artisans
By organizing and conducting skill development programmes and workshops, we can help the artisans learn modern art techniques that can be applied to traditional methods to increase their expertise and competence. Such programmes are necessary to upgrade the skills of rural artisans to today’s standards.
Helping artisans set up their businesses
Apart from financial and technical help, there is a lot that business owners can do to educate artisans. Since the majority of local artists operate in informal work settings and are not familiar with how to run a business, we can provide information, knowledge and guidance that can truly help artisans create a career and income source for themselves. By providing both offline and online work set-ups, we can increase the exposure of traditional art and craft forms within the country and globally as well.
To preserve the ancient culture, artistry, and heritage of our country, we should scale up the local art and handmade products created by skilled artisans. Through online presence and business marketing, let us join hands in bringing light to the wonderful culture of our country. Only by ensuring and providing opportunities in the local and rural communities can we grow the industry and retain the traditional art and hidden talents of Indian craftsmen.
Q17) What are the strategies to promote marketing of agricultural produce?
A17) The strategies to promote marketing of agricultural produce are-
Organic Farming
Organic farming is a product strategy, it defines the type of product you are selling. Farmers select organic farming for several reasons. They may believe in the concept of organic foods and are willing to put in the work involved to achieve and maintain organic standards. In addition, consumers have demonstrated a willingness to pay more for organic food, which leads to a larger profit margin than conventionally farmed food, even if you have less acreage.
Farmers' Markets
Selling at a farmer’s market is a distribution and sales strategy that is ideal if you are a small or medium-sized agricultural producer. It can also be a stepping stone to larger markets if you want to grow, but with the popularity of these markets, many farmers sell at a different market every weekend within a reasonable distance from their farms. It allows you to sell several types of produce, provide recipes and offer taste samples. Another benefit is that market operators or local communities handle much of the promotion, saving you time and money.
Food Hubs
A food hub is a cooperative effort among farmers in a certain region. Using this model, you address your pricing, selling and promotion marketing strategies. The hub manager handles the logistics of selling to the consumer or commercial customer, and gives you -- the grower -- a commitment to purchase a certain amount of your product. This marketing strategy allows smaller agricultural businesses to share and minimize risk, while also allowing them to compete as a group with large food wholesalers.
Community-Supported Agriculture
Try community-supported agriculture as a sales and pricing strategy if you are a smaller operation that needs reliable cash flow to sustain your operation. With a CSA, you offer shares in your farm to as many people as your farm can support. They pay for their shares each year before your crops is harvested, in exchange for a set amount of food. It can be one box of vegetables, or a box a week -- depending on their subscription or membership, and how much you can produce. Promote your CSA with online tactics such as social media, a website and emails.
Q18) Explain Profiling of Indian agricultural produces marketing.
A18) Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production, consumption, marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operate under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.
The government also promotes organised marketing of agricultural commodities in the country through a network of regulated markets. There are 7161 Wholesale Regulated Markets in the country as on 31.3.2001. Besides, there are also 7293 Wholesale Markets and 27,294 Rural Periodic.
The advent of regulated markets Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.km.
Today's agricultural marketing has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are three marketing functions involved in this, i.e., assembling, preparation for consumption and distribution. Selling on any agricultural produce depends on some couple of factors like the demand of the product at that time, availability of storage etc. The products may be sold directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered from the field or it may be cleaned, graded and processed by the farmer or the merchant of the village. Sometime processing is done because consumers want it, or sometimes to conserve the quality of that product. The task of distribution system is to match the supply with the existing demand by whole selling and retailing in various points of different markets like primary, secondary or terminal markets.
Most of the agricultural products in India are sold by farmers in the private sector to moneylenders (to whom the farmer may be indebted) or to village traders. Products are sold in various ways. For example, it might be sold at a weekly village market in the farmer's village or in a neighbouring village. If these outlets are not available, then produce might be sold at irregularly held markets in a nearby village or town, or in the mandi.
In India, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.
Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
Q19) Explain Agricultural Produce (grading and marketing) Act of 1937.
A19) Under the Agricultural Produce (grading and marketing) Act of 1937, more than forty primary commodities are compulsorily graded for export and voluntarily graded for internal consumption. Although the regulation of commodity markets is a function of state government, the directorate of marketing and inspection provides marketing and inspection services and financial aid down to the village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it is the time for us to brainstorm and come out with new ideas of value-added services. These value-added services will give the existing agricultural engine a new dimension. The next logical step could be food-processing which not only could be another revenue generating area but also can provide lots of full-time employment to our youths. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level.
Q20) Explain the survey undertaken by the directorate of marketing and inspection in the ministry of agriculture.
A20) There was a survey undertaken by the directorate of marketing and inspection in the ministry of agriculture in 1970-71 and 1971-72, of five hundred regulated markets was, with a view to assessing the adequacy and efficiency of the existing regulated markets and highlighting their drawbacks and deficiencies and suggesting measures to develop them. One of the most important drawbacks has been the inadequate financial resources of some of the market committees. During the fourth plan, a central sector scheme was drawn up by the ministry of agriculture to provide a grant at 20 per cent of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The balance will have to be provided by the commercial banks.
