Next. Importance of rice Asia’s share is more than 90 per cent. Paddy is a primary food grain crop of India. More than 50 percent of country’s population.

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Importance of rice

Asia’s share is more than 90 per cent. Paddy is a primary food grain

crop of India.

More than 50 percent of country’s population depends fully or

partially on rice as it constitutes the main cereal food crop of the

diet.

Marketing channel for rice

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Varieties for International Demand

New Varieties - Pusa Basmati (IET10364), Punjab Basmati - 1

(Bauni Basmati), Haryana Basmati-1 (HKR-228/IET10367), Mahi

sugandha, Kasturi (IET-8580).

Traditional Varieties - Basmati 370, Basmati 386,Type-3, Taraori

Basmati (HBC-19), Basmati 217, Ranbir Basmati (IET 11348)


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Standards for International Trade

CODEX ALIMENTARIUS COMMISSION (CAC)

Government Organisations (FCI, State Government,)


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Stage of marketing

Transportation is done by

Means of transport used

From threshing floor to the village/primary market. market Farmer

By head load, pack animal, bullock cart or tractor’s trolley

From primary market to secondary wholesale market and miller Trader /Miller By trucks,

railway wagons.

From miller and wholesale markets to retailer Miller / retailer

By trucks, railway wagons, mini trucks

Stage of marketing

Transportation is done by

Means of transport used

From threshing floor to the village/primary market. market

FarmerBy head load, pack animal, bullock cart or tractor’s trolley

From primary market to secondary wholesale market and miller

Trader /Miller

From miller and wholesale markets to retailer Miller / retailer

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From retailer to consumer Consumer

By head loads, pack animal, bullock cart, rickshaw, bicycle.

Export Export / trader By ship, air cargo

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Criteria for selection of channels: • There are many marketing channels involved in marketing of

paddy/rice. The following are the criteria for the selection of efficient marketing channels.

• The channel, which ensures reasonable return to producer, is considered to be good or efficient.

• Transportation cost in that channel. • Commission charges and market margins received by the

intermediaries, such as trader, commission agent, wholesaler and retailer.

• Financial resources. • The shorter channel with minimum market cost should be selected.

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Marketing Agencies

(I) Producers

(II) Middlemen

(a) Merchant Middlemen: Wholesalers, Retailers, Commission Agents.

(c) Speculative Middlemen

(d) Processors (Miller)

(e) Facilitative Middlemen: Weigh man, Graders, Transport Agency

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Types of marketing channels

Institutional marketing channelsPrivate marketing channels

Institutional Marketing Channels

PRODUCERPRODUCER PROCURING AGENCY (FCI, STATE GOVT )PROCURING AGENCY (FCI, STATE GOVT )

MILLER (FCI, STATE GOVT

MILLER (FCI, STATE GOVT

CONSUMER CONSUMER RATION SHOP/ FAIR PRICE SHOP

RATION SHOP/ FAIR PRICE SHOP

DISTRIBUTING AGENCY (STATE GOVT)

DISTRIBUTING AGENCY (STATE GOVT)

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Private Marketing Channels

PRODUCERPRODUCER MILLER MILLER

CONSUMER CONSUMER

WHOLESALERWHOLESALER

RETAILERRETAILER

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Marketing Costs and Margins

Marketing costs

Marketing costs are the actual expenses incurred in bringing goods and services from the producer to the consumers.

The marketing costs normally include Handling charges at local points Assembling charges Transport and storage costs Handling charges by wholesaler and retailer Expenses on secondary services like financing, risk taking and

market intelligence, Profit margins taken by different agencies

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Marketing Margins

Margin refers to the difference between the price paid and received by a specific marketing agency such as a single retailer, or by any type of marketing agency, i.e. retailers or wholesalers or by any combination of marketing agencies in the marketing system as a whole.

Market fee: It varies from 0.5 percent to 2.0 percent ad valorem.

Commission: The charges are usually made in cash and vary from

market to market

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Taxes: Different taxes are charged in different markets such as toll

tax, terminal tax, sales tax, octroi etc.

Miscellaneous charges: In addition, some other charges are also

levied.

Marketing Constraints for Rice

Unstable price

Spurt in production and heavy arrivals

Lack of marketing information

Adoption of grading

Inadequate storage facilities in rural areas

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Transportation facilities at producers’ level

Training of producer

Malpractices in markets

Financial problem

Infra-structure facilities

Superfluous middlemen

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Forward and futures markets :

Forward contracts are broadly of two types:

(a) Specific delivery contracts

(b) Other than specific delivery contracts.

(a) Specific delivery contracts

Specific delivery contracts are again of two types:

i) Transferable specific delivery contracts (T.S.D.).

ii) Non-transferable specific delivery contracts (NTSD).

(b) Other than specific delivery contracts

Producers: Traders/Exporters, Millers/Consumers

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To Sum Up

• Paddy is a primary food grain crop of India and occupies about 37 percent of the area under food grains and contributes more than 40 percent of food grains production in the country during 2010 -11.• More than 50 percent of country’s population depends fully or partially on rice as it constitutes the main cereal food crop. • Village traders, Itinerant traders, Wholesale merchants, Commission agents , Rice millers ,Co-operative organization ,Government organization are involved in movement and distribution of paddy from the farm to consumers.• The private marketing channel for rice is lengthy. • Handling & assembling charges, transport and storage cost are the marketing cost.• Contract marketing for rice ensures the stable price hence it reduces the risk.

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Next. Importance of rice Asia’s share is more than 90 per cent. Paddy is a primary food grain crop of India. More than 50 percent of country’s population.

Documents

previous end marketing

marketing agencies

marketing of paddyrice

rice slide

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margins marketing costs

miller trader miller