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Economics and Marketing

Economics and Marketing
9
Jul

Uses

Rice is a staple food and used by many ways as under.

1. Staple food: Rice is used as a staple food by more than 60 percent of World population. Cooking of rice is a most popular way of eating. There are many ways of domestic use like khichdi, pulav, kheer, zeera rice, idli, dosa etc.

2. Starch: Rice starch is used in making ice-cream, custard powder, puddings, gel, distillation of potable alcohol, etc.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Organisations / agencies providing marketing services

1. Directorate of Marketing and Inspection (DMI).

2. Food Corporation of India (FCI).

3. Central Warehousing Corporation (CWC).

4. Agricultural and Processed Food Products Export Development Authority (APEDA).

5. National Co-operative Development Corporation (NCDC).

6. Director General of Foreign Trade, (DGFT).

7. State Agricultural Marketing Boards (SAMBs).

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Institutional credit facilities

1. Institutional credit is the vital factor in agricultural development.

2. The National Agriculture Policy targeted annual growth rate of 4 percent over the 10th plan period.

3. The Task Force on Agricultural Credit has estimated a credit flow of Rs. 736570 crore for five years during the 10th Five year plan. During 1996-97, the total institutional credit for agriculture was 26,411 crore against Rs. 82,073 crore (target) during the year 2002-03.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Forward and futures markets

1. Forward trading means an agreement or a contract between seller and purchaser, for a certain kind and quantity of a commodity for making delivery at a specified future time, at contracted price.

2. It is a type of trading, which provides protection against the price fluctuations of agricultural produce. Producers, traders and millers utilize the future contracts to transfer the price risk.

3. Presently, future markets in the country are regulated through Forward Contracts (Regulation) Act, 1952.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Co-operative marketing

1. “Cooperative marketing” is the system of marketing in which a group of producers join together and register them under respective State Cooperative Societies Act to market their produce jointly.

2.The members also deal in a number of cooperative marketing activities i.e. processing of produce, grading, packing, storage, transport, finance, etc.

3.The cooperative marketing means selling of the member’s produce directly in the market, which fetches best prices.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Contract marketing

Contract marketing:

1.“Contract marketing” is a system of marketing in which the commodity is marketed by farmers under a pre-agreed buy-back contract with an agency engaged in trading or processing.

2. In contract marketing, a producer will produce and deliver to the contractor, a quantum of required quality of produce, based upon anticipated yield and contracted acreage, at a pre-agreed price.

3. In this agreement, agency contributes input supply and renders technical guidance. The company also bears the entire cost of transaction and marketing.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Direct marketing

Direct marketing:

1.Direct marketing is an innovative concept, which involves marketing of produce i.e. paddy/rice by the farmers directly to the consumers/millers without any middlemen.

2. Direct marketing enables producers and millers and other bulk buyers to economise on transportation cost and improve price realization.

3. It also provides incentive to large scale marketing companies i.e. millers and exporters to purchase directly from producing areas.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Alternative systems of marketing

Alternative systems of marketing include

1. direct marketing

2. contract marketing

3. co-operative marketing

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Marketing information and extension

Marketing information :

1. Marketing Information is essential for producers in planning production and market led production.

2. It is equally important for other market participants for trading.

Marketing extension:

1.Market extension is a vital factor enlightening the farmers about proper marketing and removal of marketing constraints and improves their awareness in various modern post harvest measures for efficient and cost effective marketability.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Marketing costs and margins

Marketing costs:
1.Marketing costs are the actual expenses incurred in bringing goods and services from the producer to the consumers.
2. The marketing costs normally include;
        handling charges at local points
        assembling charges

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Marketing channels

Marketing channels:
The following are the important marketing channels existing in the marketing of paddy/rice.

(i) Private:
        The major marketing channels identified in the private sector are:
1) Producer  Miller  Wholesaler  Retailer  Consumer
2) Producer  Commission Agent  Miller  Wholesaler  Retailer  Consumer

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Marketing constraints

1. Unstable price: Generally, the price of paddy/rice goes down in the post harvest period ( 3-4 months immediately after harvest) due to heavy arrivals in the market and later shoots up, which results in unstable prices.

2. Spurt in production and heavy arrivals: After the introduction of high yielding varieties of rice, the production has increased manifolds, increasing the arrivals in the markets, which results in distress sale after harvest.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Export procedures

For export of paddy/rice from India, exporter can take the help of following laid down procedure.

1. Registration with RBI and obtain RBI code number.

2. Importer – Exporter code (IEC) number to be obtained from Director General of Foreign Trade (DGFT).

3. Register with Agricultural and Processed Food Products Export Development Authority (APEDA) to obtain registration cum membership certificate.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Export and import

Export:

1.Up to 1972, India was one of the major rice importing countries.

2. However, India now exports rice to a large number of countries in the World. India’s total exports of rice were 2208560 tonnes in 2001-2002 valued at Rs. 3174 crore.

3. The share of Basmati rice was 667070 tonnes valued at Rs. 1842 crore and non-Basmati rice was 1541490 tonnes valued at Rs. 1331 crore.

Import:

1.In earlier decades, India was a major paddy/rice importing country.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Inter-state movements

1. In case of paddy, during the year 2000-2001, Tamil Nadu despatched 1805554 quintals to Assam, Bihar, Gujarat, Kerala, Pondicherry and Orissa.

2. Uttar Pradesh despatched 304540 quintals paddy to Assam, Bihar, Delhi, Maharashtra and West Bengal.

3. During the year 2000-2001, 35945250 quintals of rice from Andhra Pradesh were marketed for the inter-state movement mainly to Karnataka, Kerala, Tamil Nadu, Maharashtra, Madhya Pradesh and Gujarat.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Distribution

1. Assembling and distribution system of marketing are closely related.

2. The producer makes the movement of paddy from the farm to the assembling centers, while a number of market functionaries can be involved in the distribution dealing with its subsequent movement to the final consumer.

3. In the Survey of Marketable Surplus and Post-Harvest Losses of Paddy (2002), it has been estimated that the producer retained 44.54 percent of production for their farm-family requirement.

4. The marketable surplus was estimated to be about 55.46 percent of the total production.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Despatches

1. Paddy and rice is mostly despatched to the markets within the same state or to the markets of adjoining states.

2. It has been noticed that in the states like Punjab, Haryana, Andhra Pradesh and West Bengal, paddy/rice was despatched to the markets at longer distances.

3. The paddy/rice from 47 markets of Andhra Pradesh was mostly despatched to the markets of Karnataka, Kerala, Tamil Nadu, West Bengal and Gujarat.

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Assembling

The various agencies engaged in the assembling of paddy / rice may belong to one of the following categories:

i) Producers

ii) Village merchants

iii) Itinerant merchants

iv) Government organisations (FCI, State Government, etc.)

v) Wholesale merchants and commission agents

vi) Rice mill agents

vii) Co-operative organisations

File Courtesy: 
http://agmarknet.nic.in/rice-paddy-profile_copy.pdf
9
Jul

Service costs in a budget

1. Service costs are all the costs of the project other than labor and materials. These are costs that cannot be assigned as costs directly to activity within the project.

2. For capital items, depreciation is a way of allocating part of the cost of the item to a particular project. Depreciation is used in projects to allocate a reasonable part of the cost of the item to the project.

File Courtesy: 
http://www.knowledgebank.irri.org/economics/index.php
9
Jul

Material costs in a budget

1. Cost of materials includes the costs of supplies, equipment and tools actually used during the activity. These materials are usually divided into two categories:

Expendables – those materials that are totally consumed during the activity.

Non-expendables – those materials that have a life beyond the activity; they will still have a useful life after the activity.

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