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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 Next End Previous

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) Marketing channel for rice Next Previous End

Standards for International Trade CODEX ALIMENTARIUS COMMISSION (CAC) Government Organisations (FCI, State Government,) Marketing channel for rice Next Previous End

Means of transportation used at different stage of marketing 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 Farmer By 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 Next Previous End Marketing channel for rice

From retailer to consumer Consumer By head loads, pack animal, bullock cart, rickshaw, bicycle. Export Export / trader By ship, air cargo Next Previous End Marketing channel for rice

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. Next Previous End Marketing channel for rice

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 Next Previous End Marketing channel for rice

Types of marketing channels Institutional marketing channels Private marketing channels Institutional Marketing Channels PRODUCER PROCURING AGENCY (FCI, STATE GOVT ) MILLER (FCI, STATE GOVT CONSUMER RATION SHOP/ FAIR PRICE SHOP DISTRIBUTING AGENCY (STATE GOVT) Next Previous End Marketing channel for rice

Private Marketing Channels PRODUCER MILLER CONSUMER WHOLESALER RETAILER Next Previous End Marketing channel for rice

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 Previous Next End Marketing channel for rice

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 Next Previous End Marketing channel for rice

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 Next Previous End Marketing channel for rice

Transportation facilities at producers’ level Training of producer Malpractices in markets Financial problem Infra-structure facilities Superfluous middlemen Next Previous End Marketing channel for rice

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 Next Previous End Marketing channel for rice

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 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. Previous End Marketing channel for rice