Rural Marketing Revolution in India Essay Example
Rural Marketing Revolution in India Essay Example

Rural Marketing Revolution in India Essay Example

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  • Pages: 12 (3229 words)
  • Published: March 23, 2018
  • Type: Case Analysis
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The market has utilized different information technology tools and techniques to gather information, such as the Word Wide Web, Mobile Phones, and Word Space Satellite Radio. The combination of these technologies presents a special chance to address challenges in remote regions. Keywords: Information technology, rural marketing, government initiatives. Objective:

  1. To understand the concept of rural marketing and the problems of rural farmers.
  2. To study the role of information technology in rural marketing.
  3. To examine the government Initiatives In I. T. In rural marketing.

The advancement of information and telecommunication technologies worldwide has opened up possibilities to assist rural communities in making well-informed choices. Information Technology (IT) serves as a crucial instrument for effectively implementing new systems. This paper aims to ascertain the significance of information technology in surmounting obstacles faced by remote region

...

s.

  1. To understand the concept of rural marketing and the problems of rural farmers.
  2. Government initiatives in I. T. In rural marketing.

INTRODUCTION

India has confronted a variety of difficulties caused by political and economic normalization, flawed government policies, limited domestic and international market access, recurrent droughts, as well as other climate and environmental shocks. These factors have resulted in long-term food scarcity and increased susceptibility in the regions where these communities reside, thereby imperiling the livelihoods of numerous individuals. Effective communication and access to information and knowledge play a crucial role in the economic progress, hunger reduction, and overall enhancement of rural India.

Improved market communication and access to agricultural-related information are vital for sustainable agricultural development. By applying modern communication technologies to rural areas

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communication can be enhanced, participation can be increased, and valuable information and skills can be shared. Unfortunately, the majority of the rural population in India still faces challenges in accessing crucial information promptly.

The text titled "Review of Literature Shirts M Deckhands, P S Daschle(2011) Information Literacy: Government Policies and Initiatives in India" presents an examination of the CIT policies implemented by the Indian government. It also explores the government's efforts to enhance information literacy, specifically in the areas of computer literacy and IT literacy. Additionally, the text delves into the e-Governance projects initiated by the government, which are actively contributing to the promotion of information literacy among citizens. In another work titled "Paraded Shape (2008) Is 'inclusive marketing' the answer?", the concept of inclusive marketing is discussed.

The text emphasizes the significance of the rapid spread of information technology in promoting inclusivity in the market. It states that this technological advancement allows the previously excluded poor individuals to access market information, which was previously only accessible to the rich and powerful. As an example, the poor can now obtain price information for different commodities in various agricultural markets through transparent electronic exchanges. They can also receive this information directly from rural producers. The organization has collaborated with Grahame Phone Company to establish CIT hubs, where producers can access improved market information such as product prices, availability of raw materials, and details of local and international bulk buyers.

The pilot hubs in rural areas of Bangladesh were successful in transforming those areas.

INFORMATION TECHNOLOGY

In the past, computers were the primary focus of data processing. However, in the last decade, there has been

a shift and now the term information technology includes a broader range of services, methods, techniques, applications, equipment, and electronic technologies used for different purposes associated with information and knowledge handling and storage.

At present, a range of technologies exist that include computers, software, high-capacity storage, networks, telecommunications, databases, multimedia, training, the internet with its worldwide web, geographic information systems (GIS), online services, video conferencing, electronic mail and expert systems. In essence, these technologies cover all aspects related to acquiring, storing retrieving transferring manipulating and delivering data sound and graphics including video.

RURAl INDIA

Mahatma Gandhi once stated that "India lives in its villages," a declaration that remains pertinent even today. Villagers hold immense significance within Indian society and embody the fundamental principles of the nation. Consequently, it becomes imperative to establish a framework facilitating essential information technology infrastructure for these rural dwellers. Recognizing the significance of inclusive progress, the government has identified crucial sectors vital for enhancing rural existence, encompassing social and economic infrastructure.

The rural sector in India is categorized based on certain criteria established by the latest census, which include a population of less than 5,000, a population density lower than 400 per sq km, and over "25 percent of the male working population" involved in agriculture. Nevertheless, there are several small villages in India with fewer than 200 inhabitants where their essential requirements frequently go unaddressed.

The table displays data on the rural population, including population numbers, number of villages, and percentages of total villages for different population ranges. The information reveals that there are 17.9% of villages with a population less than 200, 24.3% of villages with a

population between 200 and 499, 25% of villages with a population between 500 and 999, 19.7% of villages with a population between 1000 and 1999, 1.8% of villages with a population between five thousand and nine thousand nine hundred ninety-nine (5,000 -9,999), and only half a percent (0.5%) of villages with a population equal to or exceeding ten thousand individuals. In total, there are six hundred thirty-six thousand three hundred sixty-five (636365) villages.

RURAL MARKETING

Rural Marketing, a new concept in the development of developing countries, heavily relies on the rural agricultural production and consumption process. It involves marketing rural products to urban consumers or institutional markets.

In rural marketing, the focus is on providing rural producers with manufactured or processed inputs or services. The demand for these products is primarily based on derived outcomes. The key participants in rural marketing include input manufacturers, dealers, farmers, government agencies, and traders.

PROBLEMS OF MARKETING AGRICULTURAL PRODUCTS

The agricultural markets in India are currently lacking accessibility, transparency, and profitability. These factors play a crucial role in enhancing the livelihoods of rural communities and boosting their incomes.

The poor marketing of agricultural products can be attributed to several factors.

  1. Poor access to markets. The development of micro-, small- and medium- enterprises (Mess) to facilitate the access of the poor to markets and enhance competition in rural areas is constrained by a number of factors, which include lack of finance or the adequate availability of Business Development Services (BUDS) to facilitate and guide the development of Mess.
  2. Inadequately structured farmers associations that could interface with traders or could undertake marketing.

These

organizations are still limited by:

  • low quality of and inexperienced, management;
  • intellectualized financial base;
  • limited access to capital;
  • poorly paid staff.

The ability of small producers to compete in the open market or respond to changes in the marketing environment is hindered by these limitations. Private sector buyers demand stringent quality standards, which increase costs for small producers without providing additional compensation. Furthermore, these standards are often supported by state regulations regarding food safety, origin, and trading. The supply chains in rural areas face challenges such as high transaction costs, limited physical access and transport services, and inadequate market infrastructure. Additionally, the low volume of production, which is often scattered, further adds to the already high collection and transport expenses, particularly in remote areas. These regions have long supply chains with numerous intermediaries, resulting in limited payment to smallholders.

Smallholders often have limited bargaining power and lack marketing credit, which causes them to sell their produce at lower prices right after harvest. This lack of market and price information hinders innovation in agricultural products and processing. To address these issues, there is a need for market research and promotion of new products. Furthermore, there is insufficient provision of finance for marketing and processing, as well as inadequate investments in gathering and disseminating market information through mass media, fax, telephone, and real-time computer access systems.

ROLE OF INFORMATION TECHNOLOGY IN RURAL MARKETING IN INDIA

The utilization of information technology has the potential to enhance the situation of rural marketing in India. This can be achieved through the following ways:

  1. Providing information

about the suitable time of selling of agricultural products.

  • Providing information about the suitable place of selling of agricultural products.
  • Helping farmers how to sell their products.
  • To get informed about the suitable price of selling of agricultural products.
  • Facilitation in accessing to new markets.
  • Awareness of current policies in relation to the market.
  • Facilitation in accessing to credit and production sources.
  • Cheaper and faster commerce of agricultural products.
  • BRINGING TECHNOLOGY TO RURAL MARKET

    Government Initiatives

    The aim of implementing I with underprivileged groups is not merely to address existing deficiencies, but also to strengthen and advance the process of social inclusion to an elevated stage. This transformation is essential for bringing about changes in the environment and social structure. I has diverse applications that can be utilized for the development of rural areas.

    The government has implemented several programs in rural India aimed at encouraging the use of I.T. enabled services and promoting more organized work. Among these programs is Trisected: Trisected.Com, which was initially a government project in Madhya Pradesh's Dear district, located in central India. Another initiative called the Sandlot project established an intranet for 33 village information kiosks, offering various e-governance services. One of the most significant services provided by these kiosks is the issuance of land record certificates, which are required by landowners for transactions like sales or leases.

    Drifter's kiosk initially has only one computer. Local language software applications have been developed for various purposes like e-governance, market price information, buying and selling, making government

    forms accessible, and facilitating different types of complaints to be communicated to the district level government. These services have typically been provided by Drifter's kiosks. To broaden the range of services, partnerships have been formed with Aggregate, a provider of a wide range of agricultural information to farmers.

    Aggregate is transforming into a comprehensive Internet portal for farmers, with Drifter's kiosks serving as a gateway to this valuable information. The popularity of Drifter among farmers indicates its value. In addition to this, Drifter offers services such as facilitating transactions between buyers and sellers, as well as providing horoscopes and matrimonial advertising. By 20012, OHO aims to benefit 4 million families with its model, which has received numerous national and international awards. Asks, on the other hand, is primarily a fiber optic cable company, specializing in the installation and maintenance of cable.

    Although cable TV has been widely adopted in urban areas in India, the rural market still lacks access. The main obstacle is the absence of last-mile infrastructure, despite the fact that many rural households, particularly in wealthier districts, can afford cable TV. Companies like Asks and Reliance have obtained licenses to establish a new fiber optic network in rural areas. Ash's motivation was to take charge of this initiative and associate it with their brand to gain corporate social responsibility recognition.

    The revenue from cable TV indicates that these kiosks might prioritize providing various entertainment and utility services, like agriculture-related information or e-governance. In-Loge, Asks, and Trisected primarily operate in north India, while n-Loge is mainly located and active in the south. This group has been instrumental in developing hardware and software advancements that

    facilitate IT-based service delivery in rural areas, including connectivity and applications. The hardware used at the kiosk level is reasonably affordable and contributes only slightly to the total cost of a kiosk.

    The construction and maintenance of the WALL towers and hub are expensive, requiring a significant density of kiosks within a specific radius to keep the cost constant. To achieve this density, the n-Loge model utilizes software innovations from the IT Achaean group. These innovations enable the delivery and implementation of applications in education, health, and agriculture. For instance, webcams are used to remotely diagnose diseases in humans, animals, and plants.

    The government of Tamil Nadu has shown strong support for n-Loge's operations in the Madeira district, where they have introduced and demonstrated numerous innovations. Mitt's Media Lab has also collaborated in the early stages, while CHIC Bank is currently testing different financial services at kiosks in Madeira. In the Milliamp district, n-Loge has teamed up with DID-Parry to enhance access to information about sugar preservation and lower the costs associated with transactions involving Parry's major sugar factory in the area. This will be achieved through improved tracking and settlement of payments.

    N-Loge has developed a strong organization and expanded beyond Tamil Nadu to other southern states, as well as the west and north of India. TIC, a large Indian corporation serving global markets, operates e-copulas, which are kiosks with unique features. The main differentiating factor is that these e-copulas are specifically designed to support their agricultural products supply chain. This focus sets them apart from DID-Parry's kiosks in Milliamp.

    The e-copulas, owned and set up entirely by TIC, distinguish themselves from previous initiatives

    as operators do not bear any investment or risk themselves. There exist four types of e-copulas, each tailored for specific purposes. Some of these copulas are sold domestically while others are exported as animal feed. As a result, they function as a cash crop rather than being subjected to regulated market conditions or subsistence consumption like wheat. The soy-copulas serve as registry points for the procurement of soybeans.

    The e-copula is used for the initial logging in and provides price information, ensuring price certainty during procurement at factories and warehouse hubs. It acts as a minimum price for procurement, as the factory or warehouse price can be higher. Additionally, e-copulas grant farmers access to local and global market prices for soybeans and derivative products, allowing them to compare prices. They also provide operational information related to cropping, seeds, fertilizer, and more, developed by TIC experts.

    E-copulas are established by TIC, equipped with solar power backup and VAST connectivity. They were created by a MONGO (non-government organization) with the aim of providing internet access to rural areas of India. This is achieved through a franchisee-based business model that generates revenue by offering marketing services, particularly focusing on local applications. The initiative was first launched in Punjab, where various centers called Senders were introduced and connected to each other via dial-up internet connection.

    These senders have power backups in case there is an interruption in electricity supply. The info kiosks offer both online and offline services, providing education information, current market opportunities, and other useful information for the villagers. Darkness's popularity stems from its ability to deliver information in the local language, with a portal designed to

    be easily understood by the illiterate population.

    The various services provided by Darkness include terrazzo (for product information), trademark (for connecting with relatives), counterrevolutionary's (educating rural youth), supersaturating (mentoring and consultancy), tartan (delivery of orders in remote areas), and more. One of these services, Rural e-save, was initiated by the Andorra Pradesh Government and first implemented in the West Goodyear District to provide e-governance facility.

    The aim of the centers is to enhance governance facilities for rural residents in India. The popularity of e-save is evident from the fact that over 400 million rupees was collected in 2003 solely for electricity payments. Building on the success of e-save in electricity bill payments, the government plans to implement it for telephone bills and local government expenses. E-save is gaining increasing popularity due to its reliable and convenient nature. To streamline land records, the Karats Government introduced a program called Boom. The Department of Revenue in Karats has computerized 20 million records of land ownership for 6.7 million farmers in the state. This program has eliminated the need for bribes and protects farmers from harassment. By paying a minimal fee of RSI 15, farmers can easily access their Records of Rights, Tenancy, and Crops (ROTC) through the National Informatics Centers (NICE), which developed the software for Boom.

    Through an online request, farmers receive an online enrollment number for further processing. The software uses LANA for disconnection, connecting all clients to the hubs. The Government of India plans to expand the project to other parts of the country, including Kraal, West Bengal, Skim, Tripper, Punjab, Harlan, Mayday Pradesh, Himalaya Pradesh, Utterance, Gujarat, Assam, Aorist, and Restaurants anthropocentric. Karats

    has established 'Grahame Data Processing Centers' in the Silicon Valley of Bangor. E-Miter is a service launched by the Restaurants Government to provide IT-enabled benefits to rural citizens. It has become immensely popular in the region. In 2002, two new projects were introduced: Look Miter and Jan Miter. Jan Miter is an integrated electronic platform that allows citizens of Restaurants to access information from any Governmental Department through kiosks located near their doorstep.

    The government's Initiative program at Restaurant has yielded numerous benefits. It has not only reduced the government's workload by eliminating the need to personally attend every call, but it has also decreased waiting times for services. Furthermore, citizens can conveniently access essential information without leaving their homes. In 2002, Jasper city introduced Look Miter, an urban electronic Governance Project that allows citizens of Jasper (and other cities) to easily pay bills online for various services including land, water, bus tickets, and BASS. This saves them valuable time that would otherwise be spent waiting. To ensure internet access and IT-enabled services are available to citizens, Community Information Centers (CICs), also known as ICCs, have been established in schools, colleges, and other government offices. These centers play a crucial role in facilitating communication between the government and the people during unfavorable environmental conditions in Raunchy Pradesh, Assam, Maniple Mealy Mozart England,and Tripper - the seven northeast states.

    People can come for Internet access and are charged a nominal amount for it. This helps cover the daily expenses of the 9 suggestions. In our country, the government's services are insufficient in terms of infrastructure, technology, and empowering people with information. To address this, we can

    establish information centers at the village level using satellite-based communication technology. The location of the center can be chosen by involving local people, and they can provide rent-free space and electricity. Furthermore, volunteers can be recruited to provide information to local rural people according to their specific needs and demands.

    Each center should have information on various topics such as agriculture, health, and government schemes. This information should be specifically helpful to rural farmers, women, and children. It should include details about local prices of agricultural input, cultural and public events, transportation and traffic timings, grain prices, insurance schemes, hospitals and medical practitioners. Additionally, it should provide information about integrated pest management in different crops. All this data should be available in local languages.

    Furthermore, interactive CD-Rooms on diverse topics can be provided. It is crucial to cater to the need for location-specific information, as information demand varies in each village. Additionally, by enhancing the services offered to rural communities, society as a whole will benefit. This includes equipping people with up-to-date market information and informing them about the latest technological developments and organizations. Moreover, it will create more market opportunities for individuals and help adjust market prices.

    IT has the potential to enhance the role of governance pillars in rural development and scarcity reduction by enabling efficient and effective interaction between stakeholders. This improves administration, business environment, and reduces transaction costs. Nevertheless, rural marketing in India is still in its early stages and rural marketers need to recognize the vast potential it holds in our country.

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