Professional Documents
Culture Documents
Channel Design in The Rubber Industry
Channel Design in The Rubber Industry
Channel Design in The Rubber Industry
y INTRODUCTION y MARKETABLE FORM OF RUBBER y INDIAN RUBBER MARKETING SYSTEM y DISTRUBUTION CHANNEL y PROBLEM & CHALLENGES y IMPROVED VALUE CHAIN y SUGGESTION TO IMPROVED VALUE CHAIN y CONCLUSION
Introduction
y India is 3rd largest producer, 4th largest consumer of NR & 5th largest consumer of NR & SR. y With 6000 units with turnover Rs 200 billion contributing Rs 40 billion to national exchequer through taxes & duties. y Presently 0.63 mt of production & project 1 mt in near future. y 98% rubber comes from S.India
contd ..
y Out of which, 94% is from Kerala. y In this dominancy of small holders is 86% & estate
contributes only 14%. y Mostly cultivated in Kerala, Tamilnadu , Karnataka & N. E. Region
y In India NR is a controlled & regulated commodity, as
its production, processing, marketing & consumption is carried out in accordance with statutory provisions.
Latex Concentrates
10.7
9.9
0.3
7.0
because of non flexibility in prod.mix. y They sell their produce in the form of
y RSS y Latex y FC.
Licenced dealers
RPS/ Cooperatives
KSCRMF
Terminal dealers
Processors
Marketing by Estates
y Improved marketing system with better price
realization. y Have their own centralised marketing set up which helps them to make direct sales to consumers. y Directly sell sheets to purchase depots of manufacturers or to terminal dealers in kottayam/ cochin.
Estates
RSS
Latex
FC
Agents
Terminal dealers
Agents
marketing system in other country. Problem of grading and price margin by village level dealer. Problem of grading & packaging by town level dealer. Bottleneck in transportation. Increase in labour cost for loading & uploading in terminal markets. Problem of licensing to buy a produce by small dealer / processor. Problem of illicit trading.
y Direct trading between producers and consumers (especially tyre-making consumers) help in growth and better consistence & tailoring of consumer needs y Indian rubber industry should take malaysian marketing structure. y Improves the direct export.
y Avoiding illicit trading. y Minimises the labour cost. y Setting up village level processing unit & storage
facilities.
Conclusion
y Indian rubber industry is unique with 1 million
producers with 3 tier marketing system. y Rubber board provides technology, training & market assistance. y Small holders are dominant & they form cooperatives to market their rubber. y 60% tribal families of S.India are engaged in rubber production with support from the govt & different cooperative agencies. y Improvements have been done by the govt to improve the rubber market in N.E. India also .
THANKYOU