crm chap 64th semister.pptx

7/27/2019 CRM Chap 64th semister.pptx

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Regulated markets

Standardisation & GradingRecent trendsFinance & Agricultural marketing

Globalisation & its effectsE Choupal


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Elected Market Committee Reps of farmers, producers,commission agents, wholesalers and govt. nominees(Director of State Agricultural Marketing Board etc)

License given to all parties involved commission agents,wholesalers, weigh men, loaders/unloaders etc

Open auction method of sale

Market charges vary from state to state

Payment of goods on the same day

Provision for settlement of disputes with arbitrationcommittee


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Provision of physical facilties canteen, drinking water,cattle shed, storage, godowns, grading labs auctionplatforms, parking spaces etc

Provision for grading, standardisation of produce,weighment of produce etc


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Process of determining of classes or grades of aproduct/service with fixed limits

Standards are established on the characteristics likeweight, size, color, appearance, texture, moisture,ripeness, taste, etc

Grading is division of products into similar classes


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Improves physical handling of goods goods ofsimilar standards can be stored/transportedtogether

Encourages marketing of produce (of higher

standards) by farmers

Reduces risk of purchase by wholesalers/firms

Provides easy availability of finance

Helps increase exports


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Reduction in length of supply chain Modern communication methods

Better transportation

Improved infrastructure warehousing, coldstorage etc

Standardisation and grading

Concept of contract farming becoming

popular


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Traditionally dominance of private money lenders, tradersand agents

Role of financial institutions more prominent in recentyears

Types of credit:

Short term

Medium Term Long term


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National Bank for Agriculture and Rural Development

Apex body looking after rural credit requirements

It provides loans to State Cooperative Banks and

Regional Rural Banks

Short term loans upto 18 months, medium term upto7 years and long term upto 25 years

Overlooks and inspects functioning of SCBs and RRBs

Maintains R & D fund for research in agriculture andrural development


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Higher standard of living

Better profits to agro based firms

Improvement in product standards

Better employment opportunities Optimum use of natural resources

Economic Growth

Attracts more FDI


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Farmer brings sample to sanchalak

He inspects the produce, assesses the quality and gives a quoteto the farmer

The quote is given on basis of previous day mandi prices that

Sanchalak finds through the website

The farmer may choose to sell via ITC

He is given written note of details of the sample and the quotedprice

Sanchalak takes the sample to nearest ITC procurement centre A chemist tests the sample

If approved, the farmer collects his full payment from the centre

crm chap 64th semister.pptx

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