Components of Rural Market

Companies are establishing themselves in rural areas by building and improving their product knowledge and cultivating a section of customers who require their products. Rural markets had previously been underserved, but as globalisation has increased, marketers have been obliged to connect with rural markets.

Agriculture and rural prosperity are inextricably linked. Agriculture provides a significant portion of rural people’s income. Crop failure has a direct impact on the income of the rural people. However, in recent years, there has been a steady reduction in the Quick Revision rural economy’s sole reliance on agriculture, as other industries have begun to play a larger role.

Components of Rural Market

Rural Infrastructure

Rural development entails improving the economic and social well-being of the rural poor, as well as extending development advantages to the lowest among those seeking a living in rural areas. Any country’s infrastructure is its backbone.

It is critical to a country’s economic development. Agriculture, agro-industries and poverty reduction in rural areas all rely on the country’s rural infrastructure. Rural infrastructure creates the necessary production conditions for social and economic development, as well as improving the quality of life in rural communities.

Infrastructure development and reforms in the agricultural, non-farm and social sectors are all included in rural development. Production, productivity, skills, access to institutional credit, marketing of commodities or services, education, health, social restructuring, empowerment of women and other socially disadvantaged groups – are the issues that have been the focus of policies in these sectors.

The infrastructure in rural India revolves around roads, health facilities, electricity, water supply system and rural housing infrastructure. Let us understand the components of rural infrastructure in detail.

• Road connectivity: The Pradhan Mantri Gramin Sadak Yojna (PMGSY) is a government-funded initiative that was initiated in the year 2000 with the goal of connecting all unconnected habitations (about 1.60 lakh) with all-weather roads by the conclusion of the Tenth Plan Period (2007). By 2007, the programme connected 70% of our villages, compared to only 40% of villages having road connectivity until the Ninth Five-Year Plan.
  
  
• Employment opportunities: Government programmes such as the Pradhan Mantri Rojgar Yojna (PMRY) and the Integrated Rural Development Project were created with the goal of encouraging educated unemployed rural youth to start their own businesses. These programmes, which are being implemented at the grassroots level through the Panchayati Raj Institution system, are aimed at providing skill-based training and linking access to bank financing. ‰‰
  
  
• Sampoorna Grameen Rojgar Yojana: Two of the Rozgar Yojana programmes include the Employment Assurance Scheme (EAS) and the Jawahar Gram Samridhi Yojana (JGSY). The EAS is intended to provide extra work opportunities for the rural poor living below the poverty line at times of severe shortages of wage employment in the manual world. The JGSY strives to provide rural infrastructure in needy areas at the village level.
  
  
• Rural Housing: According to the 1991 Census, there were 1.4 crores households without shelter or living in unfit kuccha houses. In 1998, the Central Government established a National Housing and Habitat Policy with the goal of providing “Housing for All” by supporting the building of 20 lakhs new housing units per year. The Government is committed to eliminate all homelessness by the conclusion of the Tenth Plan period, with a focus on providing benefits to the poor and impoverished.
  
  
• District Rural Development Agency: Over the years, the DRDA has been the primary organ in charge of overseeing the implementation of numerous anti-poverty programmes at the district level. The DRDA has established itself as a specialised body capable of handling the Ministry’s anti-poverty programmes on one hand and effectively linking them to the district’s overall poverty-eradication efforts on the other.
  
  
• Providing Institutional Finance in Rural India: For both the agricultural and nonfarm sectors, NABARD has been the major government entity dedicated to creating systems and delivering institutional finance in rural areas. It restructures loans made by Grameen and cooperative banks under various government programmes. ‰‰
  
  
• Land Reforms: Land reforms strive to redistribute ownership holdings in a socially just manner, as well as reorganise operational holdings to maximise land utilisation. These reforms protect the rural poor’s homestead rights on their own land and give them with house sites so they can build their own dwellings. They provide tenure and ownership rights security to sharecroppers or tenants by limiting the rent they pay to landlords.
  
  
• Land Ceiling: An economic holding has been defined as one that could provide a fair standard of life for the cultivator while also providing full employment for a family. According to the land ceil power, low standard of living, low per capita income and low economic and social positions. ing, no single farmer should own more than three times the economic holding. When determining the ceiling, factors such as soil fertility, irrigation, cultivation methods and crop nature have been taken into account.

Health Infrastructure

Healthcare and overall community vitality are inextricably intertwined in rural towns. By attracting and maintaining well-trained and motivated healthcare workers, a strong community supports and preserves high-quality health and social services for its citizens. Financially strong economies support their healthcare systems through infrastructure investments that can be later utilised. In exchange, a high-quality healthcare system can help with economic and communal growth.

Health Infrastructure in Rural India

In India, healthcare services are separated into two categories: state list and concurrent list. While some items, including public health and hospitals, are on the state list, some others, such as population control and family welfare, medical education and drug quality control, are on the concurrent list.

Before defining essential infrastructure and service gaps and requirements, the current state of physical infrastructure, staff, access and usage is evaluated. In the context of these severe need gaps, issues such as institutions, financing and policy are considered and the possible involvement of the private sector in providing healthcare in villages is analysed.

Physical Infrastructure

In rural areas, healthcare has been organised into a three-tiered system depending on population norms. The sub-centre is the far-flung institution, serving as the first point of contact between the primary healthcare system and the general public.

Primary Health Centres (PHCs) are the second tier of the rural healthcare system, with the goal of providing integrated curative and preventive healthcare to the rural people, with a focus on the preventive and rudimentary components. Promotion of better health and hygiene habits, tetanus immunisation of pregnant mothers, IFA tablet consumption and institutional births are all examples of primitive actions.

Healthcare and overall community vitality are inextricably intertwined in rural towns. By attracting and maintaining well-trained and motivated healthcare workers, a strong community supports and preserves high-quality health and social services for its citizens. Financially strong economies support their healthcare systems through infrastructure investments that can be later utilised. In exchange, a high-quality healthcare system can help with economic and communal growth.

Health Infrastructure in Rural India

In India, healthcare services are separated into two categories: state list and concurrent list. While some items, including public health and hospitals, are on the state list, some others, such as population control and family welfare, medical education and drug quality control, are on the concurrent list.

Before defining essential infrastructure and service gaps and requirements, the current state of physical infrastructure, staff, access and usage is evaluated. In the context of these severe need gaps, issues such as institutions, financing and policy are considered and the possible involvement of the private sector in providing healthcare in villages is analysed.

Physical Infrastructure

In rural areas, healthcare has been organised into a three-tiered system depending on population norms. The sub-centre is the far-flung institution, serving as the first point of contact between the primary healthcare system and the general public.

Primary Health Centres (PHCs) are the second tier of the rural healthcare system, with the goal of providing integrated curative and preventive healthcare to the rural people, with a focus on the preventive and rudimentary components. Promotion of better health and hygiene habits, tetanus immunisation of pregnant mothers, IFA tablet consumption and institutional births are all examples of primitive actions.

Manpower Shortfall

Rural public health facilities around the country are struggling to attract, retain and ensure the regular presence of highly qualified medical experts. The wider the need gap, the higher the amount of training necessary for the profession. In an ideal world, public health care would cover both the means to pay and the ability to process information about the quality of care.

However, many public services are geographically out of reach for individuals living in smaller and more remote settlements and such customers are frequently left with unfulfilled requirements. In other words, for many rural households, the issue of geographical accessibility is more essential than the price. This challenge of access is exacerbated by a lack of physical infrastructure and personnel. The private sector is unable to emerge in such areas due to the challenges of reaching out.

Way Forward

Rural health care services are hampered by a lack of public infrastructure. The current failure of the public-sector delivery system is the result of a systemic breakdown of accountability connections inside the institutional structure. There is a deficiency not only in terms of physical infrastructure but also in terms of human resources, even when compared to the government’s minimum standards. Despite the fact that many health worker positions are sanctioned at various levels, many of them are unfilled.

Education

Everyone benefits from education, whether they are acquiring new knowledge, skills or trades. The ability to learn is always beneficial to the individual. Education reflects society and is both the seed and the blossom of social growth.

It turns people from ignorance to enlightenment, a nation from underdevelopment to speedier social and economic development and shades of social backwardness into light of social amelioration.

Different children at the same biological age respond differently to the same environment. Rural development generally refers to the process of improving the quality of life and economic well-being of people living in relatively isolated and sparsely populated areas. However, changes in global production networks and increased urbanisation have changed the character of rural areas.

Sarva Shiksha Abhiyan

The importance of education in promoting social and economic advancement is widely acknowledged. Education is necessary to take advantage of new opportunities that arise as a result of economic progress.

Given this well-known reality, the government has placed a strong emphasis on education since independence, nonetheless, maintaining quality education in rural India has long been one of the government’s greatest concerns. India saw education as the most effective means of bringing about social transformation. Education for all became a priority for the government soon after the country gained independence in 1947.

Primary Education System in India

Primary education, also known as elementary education in India, is prioritised by the Indian government till the age of fourteen. The Indian government has also outlawed child labour to protect youngsters from being forced to work in hazardous conditions. But this is not enough. In the long run, rural education should aim to make rural people accountable for their participation in the following aspects of rural development: ‰‰

• Employment and income opportunities: Increased educational quality in rural areas can have a substantial impact on the growth of employment prospects. According to studies, the availability of skilled personnel, transportation infrastructure and local markets are all important variables in deciding where to locate an industrial facility.
  
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• Increase in productivity of rural labour force: Education can boost the overall worker productivity in rural areas, in turn boosting a region’s or area’s wealth.
  
  
• Education develops leadership: Individuals gain confidence, knowledge, skills and experience as a result of their education, all of which contribute to their ability to effectively and efficiently lead a group of people to success. Education aids in the identification and development of community leaders who will fight low-quality education and poverty, resulting in a successful and strong community.

Agri Infrastructure – Mandis and Coops

Infrastructure is critical in agriculture at every stage, right from input delivery, to crop seeding and then post-harvest management. Planned investment in farm infrastructure is critical for increasing productivity and reducing post-harvest losses, as well as creating capacity and increasing income generation.

Due to a lack of fundamental farm infrastructure such as storage houses, pack houses and a suitable supply chain, post-harvest losses in India are significantly high. In agriculture growth and advancing production dynamics, infrastructure plays a crucial role. The creation of infrastructure must also take into account the whims of nature, regional differences, human resource development and the achievement of the full potential of our finite land resource.

MANDIS

It is no secret that India’s most valuable asset is its agricultural and allied workforce. The latest cabinet decision to push for revolutionary agricultural infrastructure reforms aims to deliver world-class infrastructure at farm gates and aggregation hubs (mandis).

In many parts of India, mandis or physical, primary agricultural markets, are historic and pervasive economic organisations. There are about 7600 mandis in India which provide a medium to interact with farmers. Few examples of mandis include Apni Mandi in Punjab, Haryana and Rajasthan; Hadaspar Mandi in Pune; Rythu Bazars in Andhra Pradesh; Uzhavar Sandies (farmers market) in Tamil Nadu, and so on.

Intended Benefits of Liberalising Mandis

• Level playing field: According to the new legislation, people involved in farming can engage with distributors, processors, wholesalers, etc., without fear of exploitation.
  
  
• Transfers the risk: The farmer’s risk of market volatility will be transferred to the sponsor and the farmer will have access to contemporary technologies and better inputs.
  
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• Attracts the private sector: This legislation will operate as a stimulant for private sector investment in agricultural infrastructure and supply chains for Indian farm produce to national and global markets.
  
  
• Eliminates intermediaries: Farmers engage in direct marketing, removing intermediaries and allowing for full price realisation.

USES OF MANDIS

• Mandis are agricultural marketplaces established by the state government to procure agricultural products from the farmers directly. These markets are classified as grain mandis, soya mandis and cotton mandis and are located in high-production areas for various crops.
  
  
• They show the most recent commodity prices. The seller’s pricing quote may differ depending on criteria, viz., quantity, packaging, delivery terms and payment type.
  
• Most agricultural areas with a population of more than ten thousand people have mandis, which serve a total of 136000 people.

These mandis aim to increase capital formation in the farm sector in order to build infrastructure such as cold storage chains, processing and value-added facilities, improve marketing setup and adopt hygienic markets for fish and meat.

Pradhan Mantri Gram Sadak Yojana

It was initiated in December 2000 with the goal of providing connectivity to all unconnected habitations with a population of more than 500 people via good all-weather roads, with an estimated cost of `Rs60,000 crores.

Mobile Postman Scheme

The programme aims to put a phone in every rural household. A postman will be given a mobile phone as part of the programme. A telephone will be carried by the postman when he travels to a house to deliver a letter. Because a postman visits almost every home, the concept will allow phone services to be made available to virtually all inhabitants in his area.

Pradhan Mantri Gramodaya Yojana

This Yojana for the primary health sector is an endeavour to strengthen and revitalise primary health infrastructure in rural regions in order to improve the quality of life by improving the provision of basic minimal services. Rural electricity, primary health, primary education, housing, drinking water and nutrition are among the six sectors for which the Planning Commission of India has earmarked additional Central Assistance of `Rs 2,800 crores.

Agri Marketing Infrastructure – Haats and Melas

Agriculture is one of the most important sectors of the Indian economy, as it not only drives the growth and development of agriculture and allied sectors, but also has an impact on the well-being, prosperity and employment of rural people in general, as well as serving as a critical resource base for a variety of agro-based industries and agro-services.

While food security has been mostly attained through strategic planning and mission mode programmes over multiple plan periods, the fulcrum of monetising farmers and their economic well-being remains a difficulty. In light of the foregoing realities, a dramatic policy shift has occurred from a sole focus on food security to one that includes long-term income and nutritional security, as well as climate change and gender equality.

To summarise, agriculture, like any other business, can only survive if it can provide net positive returns to the producer. With proper post-harvest and marketing infrastructure, an efficient, competitive and accessible market can potentially achieve its basic goal of producing net positive returns to the producer.

In light of the government’s goal of doubling farmers’ income by 2022, better farmer-market links must be established by developing and upgrading Gramin Haats as Gramin Agricultural Markets (GrAMs) and declaring warehouses/ cold storages as market sub-yards, promoting scales of economy in production and post-production activities through active participation of Farmer Producer Organisations and squeezing the food supply chain through direct sourcing. Furthermore, farmers can significantly increase their income by selling agri. and allied produce in a more marketable and processed form on the market.

HAATS

Haats are seasonal markets that are an integral component of rural life. Haats are weekly rural bazaars that pop up all throughout rural India. They are the epicentre of India’s rural marketing system, as well as a ready-to-use distribution network woven into the rural fabric. A haat is a rural community’s open-air market and trading place. Consumer goods firms have a huge chance to market and sell their products to the rural population through haats.

For example, Tata Shakti utilised the opportunity provided by rural haats when it promoted it’s brand ‘Tata Shaktee Wider GC sheets’ by setting up stalls, organising games and gifting the visitors. Haats are often found in well-connected areas where they serve as regional nodes and cater to a big population.

They are meeting points for political, social and cultural exchange and daily basics as well as farm supplies and equipment are available for purchase. They are the means of distributing and exchanging agricultural surpluses in the local area. They are villagers’ first point of interaction with the market. Haats (periodic markets) are essential in the rural economy as well as in villagers’ social lives.

Melas

Melas are an important aspect of Indian culture. Melas are gatherings of people who get together to commemorate noteworthy events such as festivals and important occasions. Haats provide the basic requirements of the local community, whereas Melas serve a much broader population with more sophisticated factory-made goods.

Melas, according to Geometry Global Indonesia’s technical advisor and managing director, are similar to a journey overseas. Shoppers have the opportunity to discover, see, experience and learn new things.

For example, Fair and Lovely popularised in Allahabad Kumba Mela. Melas are divided into three categories: religious, cultural and commercial (commodity, cattle and exhibition). Melas are events that bring people together away from their homes for amusement as well as the sale and purchase of products and services at a specific time. They serve as a gathering place for individuals from diverse communities and religious groups, as well as a source of livelihood and agricultural commodities, as well as a showcase for crafts and craftsmen.

Commercial Infrastructure

Agriculture, agro-industries and the overall economic development of rural areas rely on rural infrastructure. It also provides essential amenities that improve people’s quality of life. Infrastructure projects, especially those in the rural sector, however, require large initial investments, long gestation periods, a high incremental capital output ratio, a high-risk profile and low rates of return on investment. All of these reasons make it difficult for the private sector to enter the infrastructure market.

Furthermore, numerous characteristics of infrastructure make it difficult for humans to properly plan, construct, run and maintain these services. As a result, infrastructure services are predominantly provided by the public sector around the world.

Infrastructure refers to a company’s, region’s or country’s core physical systems. These systems are typically capital-intensive and high-cost investments, yet they are critical to a country’s economic growth and success. In terms of economics, infrastructure frequently entails the production of public goods or the support of natural monopolies.

Concept of Infrastructure Development

Infrastructure development has become a contentious topic in recent years, as experts from many countries have used it as a metric and index to assess each country’s ability to compete on a global scale. The term “infrastructure” conjures up images of human-made physical resource systems intended for public use. Transportation systems, such as highway and road systems, trains, airline systems and ports, are only a few examples. ‰‰

• Telephony and postal services are examples of communication systems.
  
  
• Court systems, for example, are examples of governance systems.
  
  
• Essential public services and infrastructure, such as schools, sewerage and water systems. These resources are referred to as “conventional infrastructure” by me.
  
  
• Rural highways, significant dams and canal works for irrigation and drainage, rural housing, rural water supply, rural electrification and rural telecommunication connectivity are all part of the country’s rural infrastructure.

Government Policies and Reforms

There are various government policies and reforms that have impacting rural marketing in India. Let us gain insights into a few of them.

Land Policy

In a rural development strategy, land policy is critical. It is well known that the distribution of land and other assets in India is lopsided, with the vast majority of people owning small plots of property. This has a direct impact on rural residents’ capacity to earn a living. Land reforms, which include the preservation of tenants’ rights, are one of the most important ways to alter rural society. It is also been said that small farms’ productivity levels are generally higher than large farms’.

This is due to the fact that the tiny peasant works more intensively on the small amount of land that he owns. Technology Policy Advances in technology available to rural civilisations can have a significant influence. On the one hand, it is critical that newer technology be adapted to rural communities, while on the other side, existing technologies be expanded to rural areas. Rural development relies heavily on technological planning, research and development.

Agricultural Policy

Agriculture continues to be the primary source of income and employment in rural communities. Agricultural planning is, without a doubt, critical for rural development initiatives. The agriculture sector’s balanced expansion can help to improve conditions for people who rely on it.

Employment Policy

Given the severity of rural India’s unemployment crisis, the need of well-designed employment programmes cannot be overstated. These kind of programmes help protect rural incomes from weather-related variations. When the monsoon fails, IKS occurs.

Agricultural work is frequently seasonal. Rural employment programmes can help ensure a more even distribution of work throughout the year under these circumstances. The expansion of non-agricultural activity in the village economy can also help to reduce population pressure on the land.

Education, Research and Extension Policy

The problem of illiteracy in India is particularly severe in rural areas. The lack of education in rural areas can be a barrier to progress. Rural societies are likewise marked by widespread inequities in income and wealth distribution. The absence of education contributes to the perpetuation of the problem. On the one hand, education can help the rural poor ensure distributive justice while also assisting them in actively participating in rural development programmes.

Rural Institutions Policy

Rural institutions must be modified and put to good use in order to carry out successful rural development. When developing solutions, the institutional characteristics of rural society are sometimes overlooked. Institutional institutions such as panchayats must be strengthened in order to encourage public engagement in rural development.

Rural settlements are difficult to monitor from the outside since they are dispersed and often isolated. Local monitoring by institutions such as panchayats, on the other hand, can guarantee that programmes are successfully implemented and that the target community benefits from them.

Price Policy

Agricultural produce must be priced in a way that provides acceptable returns to farmers. The use of subsidies in a price policy can be used to provide basic commodities of mass consumption to those living in rural areas. This is especially important for individuals living in poverty. This problem can be solved by expanding the public distribution system’s network of ration stores in remote areas.