The document discusses the key factors that characterize the rural market environment in India. It identifies 15 major factors including population, occupation patterns, income sources, location of rural populations, expenditure patterns, literacy levels, land distribution, usage and irrigation, development programs, infrastructure, credit institutions, retail outlets, print media, and rural area requirements. It provides data on these factors over time and analyzes how they influence and define rural markets.
Governance, Environment, and Sustainable Human Development in Drc: The State, Civil Society and the Private Economy and Environmental Policies in Changing Trends in the Human Development Index After Independence
Hira N. Ahuja, S. P. Dozzi, Simaan M. AbouRizk-Project Management - Techniques in Planning and Controlling Construction Projects, 2nd Edition-Wiley (1994)
The document discusses the key factors that characterize the rural market environment in India. It identifies 15 major factors including population, occupation patterns, income sources, location of rural populations, expenditure patterns, literacy levels, land distribution, usage and irrigation, development programs, infrastructure, credit institutions, retail outlets, print media, and rural area requirements. It provides data on these factors over time and analyzes how they influence and define rural markets.
Original Description:
Expenditure pattern in rural markets
problems in rural marketing
The document discusses the key factors that characterize the rural market environment in India. It identifies 15 major factors including population, occupation patterns, income sources, location of rural populations, expenditure patterns, literacy levels, land distribution, usage and irrigation, development programs, infrastructure, credit institutions, retail outlets, print media, and rural area requirements. It provides data on these factors over time and analyzes how they influence and define rural markets.
The document discusses the key factors that characterize the rural market environment in India. It identifies 15 major factors including population, occupation patterns, income sources, location of rural populations, expenditure patterns, literacy levels, land distribution, usage and irrigation, development programs, infrastructure, credit institutions, retail outlets, print media, and rural area requirements. It provides data on these factors over time and analyzes how they influence and define rural markets.
Rural Market Environment is characterized by 15 major factors 1. Population 2. Occupation pattern 3. Income generation 4. Location of rural population 5. Expenditure pattern 6. Literacy level 7. Land distribution 8. Land usage pattern 9. Irrigation 10.Development programmes 11.Infrastructural facilities 12.Rural credit institutions 13.Rural retail outlets 14.Print media in rural areas and 15.Rural area requirements Population Year Rural population in millions Proportion to total population (%) Urban population in millions Proportion to total population (%)
Total population in millions 1951 295.0 82.6 62.0 17.4 357.0 1961 360.0 82.0 79.0 18.0 439.0 1971 439.0 80.1 109.0 19.9 548.0 1981 508.0 76.0 160.0 24.0 668.0 1991 621.0 74.3 215.0 25.7 836.0 2001 742.0 72.2 285.0 27.8 1027.0 Source: Census of India Report Occupation Pattern Sl.No Occupation Proportion to total rural population (%) 1 Agriculture 50 2 Agricultural labour 27 3 Business 10 4 Non-agri. labour 9 5 Salary earners 2 6 Not gainfully employed 2 Total rural population 100 Income generation Sl.No Sources of Income Proportion to total rural Income (%) 1 Agriculture 59 2 Agricultural wages 16 3 Business & craft 9 4 Non-agri. wages 7 5 Salaries 3 6 Current transfers 2 7 Others 4 Total rural income 100 Location of rural population
Location & concentration of rural population Sl. No. Population range (no. of persons) No.of villages Proportion to total (%) Population in millions Proportion to total (%) 1 Less than 200 1,03,952 17.9 10.53 1.7 2 200-499 1,41,143 24.3 48.46 7.8 3 500-999 1,11,998 25.0 104.36 16.8 4 1000-1999 1,14,395 19.7 160.29 25.7 5 2000-4999 62,915 10.8 185.57 29.8 6 5000-9999 10,597 1.8 69.84 11.2 7 Above 10000 2,779 0.5 42.76 7.0 Total 5,80,779 100.00 622.81 100.0 Source: Census of India Location & concentration of urban population Sl. No. Population range (no. of persons) No.of towns Proportion to total (%) Population in millions Proportion to total (%) 1 Above 1 million 23 0.6 71.00 32.9 2 500000-1million 31 0.8 21.45 9.9 3 100000-499999 246 6.7 47.62 22.1 4 50000-99999 345 9.4 23.62 11.0 5 20000-49999 944 25.5 28.70 13.3 6 10000-19999 1170 31.6 17.07 7.9 7 5000-9999 740 20.0 5.65 2.6 8 Less than 5000 198 5.4 0.66 0.3 Total 3697 100.0 215.77 100.0 Source: Census of India Literacy level
Sl. No
Sex Literacy Level in percentage 1971 1981 1991 2001 R U R U R U R U 1 Male 34 61 41 66 58 81 71 87 2 Female 13 42 18 48 31 64 47 73 Total 24 52 30 57 45 73 59 80 Source: Census of India Reports Expenditure pattern The National Sample Survey organization(NSSO) has conducted survey in the country on the expenditure pattern of urban and rural consumers.
Expenditure is studied under 2 heading, food items and non- food items.
As per the survey, total expenditure per year on food items is of the order or Rs.11,96,791 million in rural areas as opposed to Rs. 5,77,146 million in urban areas.
Expenditure incurred in rural is approximately double that of urban areas.
Similarly for non-food items, in rural areas it is about 1.4 times the expenditure in urban areas. Land Distribution Sl.No. Size (in hectares) Proportion of holding (%) Proportion of area cultivated (%) 1 Marginal (up to 1) 56.5 12.2 2 Small (1 to 2) 18.0 14.1 3 Semi Medium (2 to 4) 14.0 21.2 4 Medium (4 to 10) 9.1 29.7 5 Large (Above 10) 2.4 22.8 Total 100.0 100.0 Land Use Pattern Land usage is more for food crops rather than non-food commercial crops. Nearly 70% of area under cultivation is occupied by food crops and only 30% under non-food crops.
Irrigation Irrigation plays major role in increasing potential of rural market.
Irrigation is important force for adoption of new technology in agriculture.
If % of irrigation is more, then the income generation also increases.
Many major, medium and minor irrigation schemes have come from the central and state governments to increase the irrigation area in the country. Development Programmes Five year plans have witnessed investment by central and state governments in rural areas for development programmes. The programmes contributed to rural development are: 1. Intensive Agricultural District Programme [IADP] 2. Intensive Agricultural Area Programme [IAAP] 3. High Yielding Variety Programme [HYVP] 4. Drought-Prone Areas Programme [DPAP] 5. Small Farmers Development Agency [SFDA] 6. Marginal Farmers & Agricultural Labourers Development Programme [MFALDP] 7. Integrated Tribal Development Programme [ITDP] Cont. 8. Hill Area Development Programme 9. Operation Flood I,II and III 10. Sericulture Development 11. Fisheries Development 12. Integrated Rural Development Programme [IRDP] 13. Sampoorna Grameena Rozgar Yojana [SGRY] 14. Desert Development Programme 15. Integrated wasteland Development Programme and several others.
Infrastructure Facilities Major Infrastructure facilities for rural area includes: 1. Rural Electrification 2. Rural Communication: -Road Network -Rail Network -Cinema Houses -Television -Postal System and Telephone
Rural Credit Institutions Co-operative Societies State Agricultural and Rural Development Banks Nationalized and Non-nationalized Banks
Rural Retail Outlets Co-operative outlets Fairprice Shops Retail outlets Print Media in Rural Areas Rural Areas Requirements Classified under 7 heading: 1. Household Consumables 2. Household Durables 3. Construction Materials 4. Consumable Agricultural Inputs 5. Capital Agricultural Inputs 6. Transportation Equipments 7. Services Household Consumables More & Better Food Clothing Medicines Toiletries & Cosmetics Educational Supplies Wines & Sprits Beverages Cigarettes, Beedis, Etc.. Household Durables: Furniture Cooking Utensils Electrical Appliances Radio & TV sets Clock & Watches Sewing Machines Ornaments & Jewellery 3. Construction Materials: For Residence For Infrastructural Facilities Rural & Cottage Industries Business Establishment Society & Community institutions 4. Consumable Agri Inputs: Manure & Fertilizers Seeds & Agro Chemicals Insecticides/ Pesticides Tools & Implements Petrol, Diesel Oil & Lubricants Electricity Capital Agri Inputs: Tractors & Implements Trailers Harvesters, Threshers Pump Sets Transportation Equipments Bullock Carts, Jeep/Car Bicycle, Mopeds, Motor Cycle Light Commercial Vehicles
Services: Banking, Health Education, Electricity Transport & Communication
Rural Demand and Rural Market Index Hierarchy of Rural Markets State capitals, metros and cities Terminal Markets Secondary Wholesale Assembly Markets Primary Wholesale Assembly Markets Shandies, Hatts, Jathras and Melas Village Shops Rural Demand (Diff B/W R&UD) Features Rural Urban Demand Pattern: Seasonal Uniform Spread: Widely Concentrated Literacy Level: Low High Product Knowledge: Not Known Known Common Facilities: poor Very Good Awareness of needs: Not Known Known After Sale Service: Inadequate Adequate Sources of Info: Word of mouth Any Media Guidance of Usage: Needed Not Needed Thompson Rural Market Index In the direction of assessing potential of rural markets Hindustan Thompson Association Limited has developed a guide to rural marketers called Thompson Rural Index. The first attempt was made in 1972. The data were available at district level, they collected data for 334 district & identified 11 factors. Each factors were assigned with a weightage to each of these factors to assess the potential. Second attempt was made in 1986. During this, 26 factors are considered for constructing rural market index & published under the name Thompson Rural Market Index.
Cont They considered 355 districts out of 412 of the county, others were not considered because of very small population. Data were collected on the following indicators for the construction of the Index.
1. Area of the District in sq. km
Demographics: 2. Population 3. Males 4. Females 5. Density per sq. km 6. Percentage distribution of population by population strata. 7. No. of Villages Cont 8. Percentage distribution of villages by population strata. 9. Literate 10. Percentage of literacy 11. Literate: Males 12. Literate: Females
Agriculture Related Data: 16. Gross cropped area in hectares 17. Gross irrigated area in hectares 18. Area under non-food crops in hectares 19. Average size of operational holdings in hectares Cont Agricultural Inputs Data: 20. Pumpsets and tubewells 21. Fertilizer consumption in metric tones 22. No.of tractors
Rural Electrification Data: 23. Percentage of villages electrified
Commercial Bank Data: 24. No. of rural branches 25.Deposits in Rs. Lakh 26. Advances in Rs. lakh To validate the data, correlation analysis is conducted on 10 selected variables related to agriculture with value of agricultural production. Selected 10 variables are: 1. Agricultural labourers 2. Gross cropped area 3. Gross irrigated area 4. Area under non-food crops 5. Pumpsets 6. Fertilizer consumption 7. Tractors 8. Rural credit 9. Rural deposits and 10. Villages electrified
Based on the index, no. of districts have been classified as A.B.C.D & E class markets Class of Markets Index Range No. of Districts Percentage of market A 60.00 to 100.00 22 17.8 B 40.00 to 59.00 39 20.5 C 30.00 to 39.00 54 20.4 D 20.00 to 29.99 86 23.0 E Below 20.00 154 18.3 Total 355 100.0 Problems in Rural Marketing 1. Underdeveloped people and underdeveloped market 2. Lack of proper physical communication facilities 3. Media for rural communication 4. Many languages and Dialects 5. Vastness and uneven spread 6. Low per capita income 7. Logistics, storage, handing and transport 8. Market organization 9. Product Positioning 10. Hierarchy of markets 11. Low level of literacy 12. Seasonal Demand The problems are grouped under 6 major headings: 1. Consumer motivation & buying habits 2. Location & degree of concentration of demand 3. Dealer availability, attitude and motivation 4. Mass communication media 5. Logistics, storage, handing and transport 6. Market organization
Governance, Environment, and Sustainable Human Development in Drc: The State, Civil Society and the Private Economy and Environmental Policies in Changing Trends in the Human Development Index After Independence
Hira N. Ahuja, S. P. Dozzi, Simaan M. AbouRizk-Project Management - Techniques in Planning and Controlling Construction Projects, 2nd Edition-Wiley (1994)