Rural !ndia

Agro prod and food processing sector

v  Turnover 250000 crore

v  Cumulative investment 70000 proposals

v  Value added production 80000

v  CII-Mckinsey 200 million shift to diet implements

v  1.8 – 2% of indian fruits and vegetables being processed compared to 30% in Thailand, 80% in Brazil, 60-70% UK-US

·         Agricultural & processed Food Product Export development authority

·         Marine product export dev. Authority

·         National cooperative dev. Corporation

Grain Drain

PDS à world’s largest food security programme

·         230 million ration card holder

·         Network of 500000 fair price shops

Revamped PDS and Targeted PDS but not really worked

ü  Country saw 3.68 lakh rural postal life insurance schemes sold in 2002

ü  All india rural credit survey

1951 --  70% all money from money lenders

1981 – 16%

Institutional sources of finance

1.       Credit cooperativesà voluntary organisation by like-minded people

2.       Primary Agricultural Credit Society and Large-sized Adivasi Multipurpose Societies à provide rural credit in extremely remote and adivasi area, may be started by 10 or more person

3.       Regional Rural Bankà credit to small and marginal farmers set up in 1975 each has authorised capital of Rs. 1 crore and issued paid up capital of rs. 25 lakhs

4.       National Bank for agricultural and rural development à apex body that looks after the financial needs of agricultural and rural development

ü  24 million Kisan Credit Cards issued in rural areas exceeds 17.7 million credit plus debit cards

ü  Rs. 52000 crores sanctioned for 196 RRBs in 23 states and 14500 branches

ü  Indian Agri Research Institute has developed thornless and long stemmed varieties of rose to boost the market which is more than 100 crore

Rural marketing strategy

Demographics of each village can be obtained from

•   National council for applied economic research
•   Indian market research bureau
•   Marketing research team
• •  HP started HP rasoi ghar set up in villages where villagers can cook food on lpg at subsidised rates
  •   HUL is training small groups of girls on beauty treatment to promote Ponds as they don’t like models promoting products
  •   LG launched sampoorna CTV with onscreen display in local languages
  •   Electrolux kelvinator refrigerator Bijlee comes with power backup
  •   Videocon washing machine washer at 6500
  •   Mahindra Maxx
  •   Lifebouy is sent in bullock carts and shg
  •   Cavin kare washed peoples head to advertise Chic shampoo
  •   HUL gave free sample of lifebouys and washed hands
  •   Colgate operation Jagruti à teaching harmful products of charcoal powder and benefits of tooth powder
  •   Parachute smell test "shudhta ki pehchaan"
  •   Henko( hey Nakko…………… I don’t want)
  •   Naer.org     goi.co.in   censusindia.com   agroindia.com    maid.org   imrb, rkswami guide to rural market