Rural Credit & Marketing (INDIA)

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Information about Rural Credit & Marketing (INDIA)

Published on July 19, 2013

Author: jaskaranskohli


Made By : Jaskaran Singh Kohli

 India is a country of villages , about 50% of the villages have very poor socio-economic conditions.  Need for proper basic infrastructure.  Financial assistance to the poor by providing productive resources through credit and subsidy.  Livelihoods rely on businesses this called for Rural Marketing.

 Most of the population of rural areas is poor and needs financial assistance in the form of credit.  Borrow money to buy fertilizers ,seeds ,other implements.  Family expenses of marriage, death, religious ceremonies.  Money lenders and traders exploit the poor farmers.  Lend money on High Rate of Interest.  Do not maintain proper accounts and Harass the poor farmers.  Borrowers find themselves in a Debt Trap.

Sources of Credit Informal Sources : Non Govt. sources such as family,friends,moneylenders,trad ers etc. Formal Sources : Govt. owned institutions such as commercial banks, regional rural banks etc

Reforms:- National Bank for Agriculture and Rural Development. Regional Rural Banks. Commercial Banks. Cooperative Banks. Micro Finance Institutions. Self Help Groups. Green Revolution. Introduction of Subsidy.

National Bank for Agriculture and Rural Development  Established on 12 July 1982 by a special act by the parliament.  It is an apex body to coordinate Rural Financing System.  Its main focus was to uplift rural India by increasing the credit flow.  It regulates the cooperative banks and the RRB’s.

 Provide financial services to micro-entrepreneurs and small businesses, which lack access to banking and related services due to the high transaction costs.  Give loans to poor rural people at a low interest rate. Promote Self Reliance. Provision of Subsidies. Provide Access to Funds. Encourage Entrepreneurship. Community wide Benefits. Empower women.

Self Help Groups  Are village-based financial intermediary usually composed of 10-20 members of the same area.  Members make small regular savings contributions and lend at a very low rate of interest.  These are Non Profit organizations and work for the welfare of the members.  Main objective is to Empower Women.  Building blocks of the rural and village economy.

Rural Marketing  It involves the process of developing , pricing, promoting and distributing rural products and services to satisfy consumer needs and achieve organizational objectives.  Plays a vital role in the lives of rural people.  Changing life style of people has also influenced Rural Marketing in many countries.

Rural Marketing In India  The rural population in India accounts for around 627 million, which is exactly 74.3 % of the total population.  Rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioural factors operating in the country.  Contributes approximately 50% to India's Consumer Market.  Absolute size of rural India is expected to be double that of urban India.

Features Urban Rural UrbanRural RuralRural • Large and Scattered market. • Major income from Agriculture. • Low standard of living. • Diverse socio-economic backwardness. • Lack of Infrastructure Facilities. • Sustains livelihood.

Attractiveness of Rural Markets Large population. Rising prosperity. Growth in consumption. Growth rate higher than urban. Rural marketing is not expensive. Remoteness is no longer a problem. Urban Markets are overcrowded. Source of income other than Agriculture.

 Low Per Capita income.  Too many languages.  Geographical Spread.  Underdeveloped Markets.  Majority depend upon Agriculture.  Inadequate fixed income.  Lack of proper Technology and Infrastructure.  Lack of Transportation and Communication facilities.

AMUL  Amul was formed in 1946 as a dairy co-operative.  It is jointly owned by 2.79 million milk producers in Gujrat.  Every day Amul collects 8.4 million liters of milk 2.79 million farmers.  Amul advertises in rural India.

AMUL INFRASTRUCTURE IN RURAL INDIA Producers Members 3.11 Billion Village Societies 11,962 Milk Handling Capacity 9.1 million liters per day Daily average milk production 511 metric tons per day Sales turnover $ 1068 million Biggest strength Supply Chain Management

 After 16 years if absence from 1977-1993 Coco-cola returned in India to become nations top soft drink brand.  Atlanta based Coco-cola company is one of the first global majors to have spotted the potential in Indian rural markets.  Over the years companies rural distributors have reached 6000.  To excel in rural market it created local flavours to suit peoples needs.

Jaskar an Singh

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