CRM Impt Ques

8/14/2019 CRM Impt Ques

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Q1. Explain the reasons for creation of a cooperativemovement& discuss the problems that cause hindranceof smooth functioning of cooperation.

A1. REASONS FOR CREATION OF CO-OPERATIVE

MOVEMENT (MAGIC-BR)The British regime was firm after the freedom meeting in 1857. Duringthis period there was Industrial Revolution in England. It spread in India too& affected the position of In dustries. In other countries of the world therewas social & financial exploitation, decline of cottage industries &exploitation of farmers. There was a similar position in India too. This wasthe right atmosphere of developing Co-operative Movement in India. Theco-operative movement thus started during the British period.

The reasons were as under:(1) C-British policy of colonialism : Britishers got a new market in India.

Goods produced in England were sold in Indian markets which had badly

affected the industries. Indian cottage & village industries deteriorated.This necessitated institutes to provide finance at a reasonably lowerinterest.

(2) I-Indebtness of farmers: Indian agriculture was not beneficial tofarmers as there were droughts & floods all over the country, hence thefarmers did not get sufficient produce from their farms. Thus the farmershad to borrow money from the moneylenders at exorbitant rate ofinterest. The land was mortgaged with the moneylenders. Since thefarmers could not repay the loans, moneylenders would take away theirlands. It became necessary to find out some solution for this. It was

therefore important to establish such organisations which wouldprovide .short term, medium term & long term finance at low rates ofinterest.

(3) B-Backward methods of farming: The pre-independence period ofIndian agriculture was acute. Indian farming totally depended on nature.The old systems & old appliances further added to the deterioration offarming in India. Indian agricultural field was in the need of loans forvarious purposes. However there was no provision for that the farmershad to fully depend upon moneylenders who gave them loans at anexorbitant rate of interest. Hence it was necessary to make provision ofsufficient finance to agriculturists.

(4) M-Increased impact of moneylenders : The impact of moneylenderswas on an increasing scale in rural areas. Along with giving loans at anexorbitant rate of interest these people used to cheat the ruraluneducated people. It was therefore necessary to have Institutes as analternative to moneylenders for giving finance for short term & longterm basis. The co-operative societies were the only remedy toovercome the problems of farmers who could satisfy their needs offarming & other essentialities.

(5) R- Increase in market rates & scarcity : The agricultural incomereduced due to drought & there was scarcity of food grains . People hadto face increased rates & scarcity. It became necessary to have aninstitute which would provide the essentialities regularly & at reasonable


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rates. This was possible through co-operative societies & there the co-operative movement started during British regime in India.

(6) G-Efforts made by the government : Britishers tried their best tominimise the importance of moneylenders & to give some relief to Indianfarmers by providing finance in agricultural field. For that they passed

Deccan agricultural relief act in 1883 & agricultural loan act in 1884. Butthe agricultural activities found these acts insufficient. For this the co-operative movement started & under the leadership of Sir Edward Lawits foundation stone was laid in India.

(7) A-Government's financial administrative & judiciary assistance :The co-operative movement started in 1940 by passing the co operativesocieties act. The government adopted the policy of rendering financialassistance for the development of co-operative movement. Theresponsibility of registration & auditing of accounts of the societies waswith the government. The procedure of registration was simplified bymaking amendments from time to time restrictions were imposed onutilisation of profits.

The co-operative societies were exempted from income tax, stamp duty,registration fees, etc. changes were made in the combination of societies byappointing expert committees. Amalgamation of Tiny Societies in largerones was permitted. Reconstruction of societies, dead or non-functioningsocieties were to be wound up for making them self reliable . The Co-operative Credit & Marketing were linked up during this period.

MAI N PROBLEM S INVOL VED IN EFFECTIVELY MANAGING CO-

OPERATIV ES IN INDIA (BPL-GLOW):There are some major problems that cause hindrance in the smooth

functioning of the co-operatives. They are as follows:(1) P-Poor Performance & loss of financial viability : By & large the

performance of co-operatives in India is not satisfactory. In spite of hugegovernment grants & equity participation, most of the co operatives inIndia are not financially viable. A large number of SCBs, DC CBs,SCARDBs & PCARBs are not performing well financially. If thegovernment stops its grants & withdraws its equity contribution, many ofthe co-operatives would lose their financial viability, unless they are ableto raise their resources from private sources or the capital market.

(2) L-Lack of Professionalism in Management : So far the co-operatives have been thriving on the government conferred privilegesincluding huge grants, subsidies & protectionist policy. Todaycompetition poses a major threat to the co-operatives. They are going toface growing competition form the domestic & foreign companies. As ondate the co-operatives in India follow the traditional Managementtechniques. For a country like India, which has the largest network of co-operatives in the world, it is a matter of pity that its co-operatives are sogrossly underestimated, mismanaged or not managed at all. One of themain reasons for the failure of co-operatives is to attract & retain

professional managers.


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Most of the co-operatives at the village level are small in terms of size,business turnover & profits, & hence they cannot afford to hireprofessional managers. Besides this the government officers deputed tohead the co-operatives are not accountable to members of the co-operative & also do to have any stake in the co operatives. They are

more accountable to political or bureaucratic persons & henceprofessional management is a question far off for co-operatives.

(3) G-Excessive Government control & political interference : Variousco-operatives in India were created through the enactment of laws bythe government as an instrument of purveying production inputsincluding credit marketing of agricultural produce & delivering otherbenefits. The politicians saw the co-operatives as vehicles for politicalmobilization & key to vote banks & they were dragged into the realm ofparty politics.

In states like Maharashtra, Tamil Nadu & Andhra Pradesh thegovernment started with the tampering with the management ofcooperative societies mainly for political support. Hence even today wefind excessive government control & political interference in themanagement of co-operatives.

(4) L-Lack of Good Leadership : Every co-operative needs an honest,dedicated, skilled & intelligent leader. Although India is a big countrywith a population of 1 billion people, good leaders are short in supply &those who are good are reluctant to take up the position as leadershipposition in co-operatives are mostly honorary.

(5) B-Poor Board-Management Relations : As the co-operatives grow itneeds professional managers. One of the important reasons for the poor

performance of agri-business co-operatives is the poor Boardmanagement relation. In a members controlled co-operative, it is themembers who elect the Board of Directors & they have the power toappoint or dismiss their managers. As there' is lot of politics involved inthe management process, often the relations are strained.

6) W-Poor work Environment : The co-operative managers get theirsalaries, annual increment & promotion regularly irrespective of theirperformance. There are neither incentives for good performance norpunishment for poor performance. Hence the work environment is verypoor.

7) L-Limited & Unlimited Liability : In a corporate enterprise if the losses

do occur , it has to be borne by the Board of Directors or the FinancialInstitutions, whereas in co-operatives the entire loss is shared equallyamong the members. Unlimited liability comes only as a last resort. Itcan be enforced only at the time of closure or Liquidation of the society.

8) L-Loss of Focus on the Prime Objective : The prime objective of acoopera tive is to provide maximum possible benefits to its members.One of the potential threats for the survival & growth of a co operativearises when it looses or dilutes its focus on the prime objective. There isgrowing evidence that a sizeable proportion of members feel betrayed bytheir co-operatives. They feel that the principle of co-operation is not

followed by the management.


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Q2. What are the functions & powers of the Registrar?

A2. IMPORTANT PROVISIONS & POWERS OF THE REGISTRAR (DG-SAMBAR-FALDA) :1. D-Deciding policies : The policies regarding the development of

cooperative societies are to be decided as per the financial policiesdecided by the state & central government .2. G-Guidance : The information & guidance is to be given to the workers &

also the procedure for registration, legal provision, etc. is to be given forestablishing co-operative societies .

3. R-Registration of co-operative societies : The application received forregistration is to be scrutinized & other register the society or reject theproposal .

4. C-To handle the' complaints regarding membership : Complaintregarding memberships either not getting it or cancellation are to beattende d.

5. B-Consent for amendment of Bye-Laws : Consent should be given tothe bye-laws submitted by the co-operative societies at the time ofregistration. If there are any changes they are to be considered &approved .

6. F-Investment of society's funds & advances : Some portion of theprofit of society is transferred to Reserve Fund. Reserve Fund is to beinvested elsewhere. The registrar can permit the society to utilize theexcess of Reserve Fund for the business likewise he can allow one societyto give loans to other .

7. A-Audit & inspection of the society : With the help of the employeesthe auditor has to audit the accounts of the society & carry out theinspection.


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8. M-Duties regarding meetings : If the meetings are not held by thesociety from time to time, the society is to be instructed to call the same.If necessary the registrar can call a special general meeting & extendthe p eriod.

9. A-Amalgamation & reconstruction of the society : If co-operative

societies are not capable they can be amalgamated or reconstructed soas to make the base of co-operative segment stronger .

10. G-Guidance for duties : Guidance for duties is given for the smoothworking of the society for writing books of accounts, etc .

11. A-Adjournment of executive committee : If the executive committeeof a society is not functioning properly, there is a breach of provisions inthe bye-laws for safeguarding the interest of th e society , the registrarcan adjourn the executive committee of the society.

12. P-Penalty : The registrar can impose penalty if there is default by themembers of executive committee or the promotes of the society.

13. D-Decisions for disputes : Registrar has to give decisions for thedisputes arising out of election & other mat ters.

14. S-Stoppage of business of society : After conducting the enquiry ifaregistrar finds that the work of the society is not satisfactory & againstthe welfare of the members then he has powers to stop the business ofthe society .

15. A-Assisting in recovery of loans provided by the LandDevelopment Bank: Registrar can assist land development bank inrecovery of loans by granting certificat es.

16. A-To give class of audit : The registrar has to give audit class to thesociety after the inspection & audit of the society in respect of its

financial status, business, loans, assets & liabilities .

Q3. What are the powers & duties of the managingcommittee?

A3.Powers of Managing Committ ee (BADSHAHS-C 4ST)1. B-The Management of the business of the society shall be vested in the

committee .2. S-Scrutinize & place before the General Body all the applications for

membershi p.3. C-Check the account of the Secretary or treasurer & to examine the

registers & books of accounts & to take steps for the recovery of sumsdue to the society.

4. H-Hear & deal with complaints.5. S-See that the cash book is written up promptly & signed daily by one

of the members of the committee authorised in this behalf.6. S-Sanction working expenses, count the cash balance & deal with the

other miscellaneous business.7. A-Appoint, suspend, remove or discharge all officers (except the

auditors), solicitors, managers, architects surveyors, accountants,agents, servants & employee & fix their duties & remunerations.

8. D-Deposit the funds of the society in any bank or banks approved bythe registrar.

9. C-Enter into all contracts for the society & settle the terms thereof .


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10. C-Compromise & settle or contest either in a court of law or byarbitration any suit, debt, liability or claim by or against the societ y.

11. C-Convene all the meetings of the society according to the bye-lawsthereof.

12. B-Borrow, raise or secure the payment of money in such manner as the

committee may think fit & to redeem or payoff any such securities.13. S-Suspend any officer, recommend his dismissal to the general

meeting & appoint a substitute pending the final decision.14. T-Refuse transfer of shares in the event the transferee is not found to

be a fit person to be a member of the society or is disqualified .15. S-Sanction emergency expenditure.

Du ties of the Managing Committee (BAAAPU -BD ):1. B-To observe the provisions of the act, rules & bye-laws.2. A-To maintain detailed particulars of assets & liabilities of the society.3. A-To maintain true & accurate accounts & record as particulars of

receipts & expenses.4. A-To maintain prescribed books of accounts.5. P-To get the accounts of the society audited & place them b efore the

General Body Meeting.6. U-To hold elections of committee before the expiry of its term.7. B-To convene General Body Meeting & Special General Meeting in

accordance with the act, rules & bye-laws.8. D-To comply with the directions of the registrar in accordance with the

inspection report of the registrar & auditors.

Q4. What are the function of agriculture credit society &

discuss the chart of cooperatives credit structure in India?A4. IMPORT ANT FUNCTIONS OF AGRICULTURAL CREDIT SOCIETIES (PASS-AL-FB)

1. A-To distribute different agricultural inputs such as seeds, fertilizers,pesticides etc. to the member farmers to enable them to carryonagricultural operations effectively.

2. F-To provide sufficient or enough finance to their members & therebytry to reduce their dependence on the money lenders who exploitthem.

3. L-To supervise the use of loans & to recover the loans disbursed.

4. S-To provide storing facilities to the farmers for agricultural produce.5. A-To collect or purchase agricultural produce from the farmer &supply the same to consumer Co-operative societies & Marketingsocieties including the Government for the purpose.

6. S-To encourage their member to promote the habit of thrifts & savingamong them.

7. P- To associate themselves with the programme of productionactivities.

8. B-To borrow from central (apex) agencies


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Q5. Discuss LDCB, UCB & their objectives.A.5 LAND DEVELOPMENT COOP. BANK (LDCB)

The primary co-op credit societies & other co-op. institution who providefinance for agricultural development could not provide long term financefor agricultural development. There was a need for long term finance foragricultural development & it is with this purpose that Land Dev elopmentCo-op. Bank, which was formerly known as land Mortgage Co-op. came tobe established. These Co-op. banks are suppose to provide credit at lowrate of interest & also without delay so as to enable them to bring aboutagricultural development rapidly & help the process of investment inIndia.

The first Land Development Bank in India was set up in 1929, atMadras. After independence the development of planned agriculture was

given priority. Hence the government financially assisted the banks byproviding agricultural credit.

The following circumstances led to rise of Land Development Banks inIndia:

(1) S-Most of the financial institutions used to provide only short-ter m creditto agriculture. T here was a need of long term credit supply to agricultur e.In order to cater to this need Land Developme nt Banks were set-up.

(2) L-Money lenders, financial institutions in the unorganized sector used toprovide long term credit t o cultivators for repaying their old loans. Therewas no financial institute ready to provide such credits. So the LandDevelopment Banks were set-up to make cultivators free from theclutches of money lenders.


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(3) C-Various committees appointed by the government recommendeddifferent measures for supplying long term credit to cultivators. Hencethe government decided to set up Land Development Banks.

FUNCTIONS OF LDCB (SALAD-COS) :1. C-To encourage thrift & co-operation among members.2. S-To supervise & inspect the working of primary Land Development Co-

op. Bank & to verify the utilization of both.3. O-To open branches or organize new primary land deve lopment banks.4. L-To grant loans to primary land development co-op. banks or to

individuals through their branches.5. D-To issue debentures on the security of the mortgage bonds transferred

by the primary land development co-op. banks to it on such terms &conditions as pre scribed under the relevant act.

6. S-To promote the habi t of savings among the members.

7. A-To provide valuable advice to cultivators in connection with their land.

Q.6 Explain HUDCO, RRBs.A6. HOUSING & URBAN DEVELOPMENT CORPORATION (HUDCO):

HUDCO - Housing & Urban Development Corporation Ltd wasincorporated on 25th April 1970: HUDCO India was formed to assist variousagencies & authorities in upgrading the housing conditions in the country.Special emphasis was laid on the development of housing facilities orHUDCO Niwas Yojana for the lower income group (LIG) & the economicallyweaker sections (EWS) of the society.

Starting with an initial equity base of Rs. 2 crores, HUDCO India has a

net worth of Rs. 3977 crores today. HUDCO Inc primarily aims to providefinancing for housing developments. HUDCO Financial Services are thetask of HUDCO Bank that has mobilized finances from:

F-Financing institutions like LIC, GIC & other banking institutions I-International assistance from KfW, JBIC, ADB, USAID etc. B-Market borrowings through debentures, taxable & tax-free bonds P-Public deposits HUDCO has been associated with not just housing

development but the overall infrast ructure development assistance.

The activity areas of HUDCO include:

Housing (VJ-RUSSIA) : U-Urban housing R-Rural housing S-Staff rental housing R-Repairs & renewal S-Shelter & sanitation facilities for footpath dwellers W-Workingwomen ownership condominium housing P-Housing through private builders/ joint sector I-Individual HUDCO housing loans & HUDCO home loan for construction

& renovation through 'HUDCO Niwas' A-Land acquisition

V-Valmiki Ambedkar Awas Yojana (VAMBAY) J-Jawahar Lal Nehru National Urban Renewal Mission (JLNNURM)


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Infrastructure: A-Integrated land acquisition & development. S-Environmental improvement of slums U-Utility infrastructure

S-Social infrastructure E-Economic & commercial infrastructure

Financial Services: H-HUDCO Niwas - HUDCO home loans by HUDCO Bank F-Financing of Urban Development Projects & Industrial Products

Projects by HUDCO Bank. .

Building Technology: T-Building centres for technology transfer at grass-roots M-Building materials industries A-Building & technical assistance to all borrowing agencies, research

training & networking in human settlement planning & management.

Research & Training Capacity:Along with the above services by HUDCO Inc, HUDCO also serves India as

HUDCO Electric Supply Limited. HUDCO Electric is a wholesale distributor ofelectrical products to industrial, commercial & residential markets coveringmotor control, distribution products, wire & cable, lighting fixtures, conduit,boxes & fittings, electric heating, wiring devices & many other products.Other critical HUDCO services includes real estate development projects by

HUDCO Delhi on behalf of the ministry of urban development on landallotted at Andrews Ganj (HUDCO place) & Bhikaji Cama Place (HUDCOVishala , HUDCO Trikoot & August Kranti Bhavan). These activities cover thestates of Jammu & Kashmir, Punjab, Himachal Pradesh, Haryana, Rajasthan,Uttar Pradesh, Bihar, Tripura, West Bengal, Orissa, Andhra Pradesh, TamilNadu, Kerala, Karnataka, Maharashtra, Madhya Pradesh & Gujarat

REGIONAL RURAL BANKS (RRBS):One of the important points of the 20-point economic programme of lateMrs. Indira Gandhi at the time of emergency was the liquidation of ruralindebtedness by stages & provision of institutional credit to the farmers &

artisans in rural areas.It was in this regard that the Regional Rural Banks were formed. The

main objective of the Regional Rural Banks is to provide credit & otherfacilities particularly to the small & marginal farmers, agriculturallabourers , artisans & small entrepreneurs so as to develop.

Initially five regional rural banks were set up in October 2, 1975 atJaipur , in Rajasthan, Moradabad & Gorakhpur in Uttar Pradesh, Bhiwani inHaryana & Malda in West Bengal.These banks were sponsored by the Syndicate Bank, State Bank of India,

the Punjab National Bank, United Commercial Bank & United Bank of India

respectively. The share capital of the regional rural bank is subscribed by


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the Central Government (50%) the concerned State Government (15%) &the Sponsoring Commercial Bank (35%).

OBJECTIVES OF REGIONAL RURAL BANKS (CS-F-PAL) :(1)C-To provide credit at the rate of interest at which co-operative credit

societies provide.(2) S-To provide credit to small & marginal farmers, agricultural labourers &

rural artisans.(3) F-To limit the area of functioning to two districts in the State.(4) P-To remove paucity of finance in the rural sector.

The regional banks differ from the commercial banks in the following ways:(i) A- The area of operation of RRBs is limited to a specified region

comprising one or more districts of a State.(ii) L-RRBs grant direct loans & advances only to small & marginal farmers,

rural artisans & agricultural labourers & others of small means forproductive purposes.

Q7. Discuss the functions of RBI, SBI banksA7. IMPORTANT FUNCTIONS OF RBI - (SWIM- FLRS ) :(1) F-Financing functions : Reserve Bank of India provides three types of

finance (i) Short Term Finance, (ii) Medium Term Finance & (iii) Long TermFinance.

i. S-Short-term finance : Short-term loans are the type of seasonal loansprovided for agricultural & marketing operations. These loans are given tothe farmers at a concessional rate of 2% below bank rate.

Short-term loans are provided with following two objectives:

(a) To build up strong rural credit structure.(b) To fulfill agricultural credit requirements as adequately as possible.

RBI has also put two special conditions in sanctioning these concessionalfacilities (i) Non overdue cover. (ii) Minimum involvement. The twoconditions ensure co operative banks to employ larger finance toagricultural loans. There has been a substantial expansion in the financialassistance of short term credit of the RBI. The RBI has sanctionedagricultural loans at concessional rates of interest. After the establishmentof NABARD instead of RBI, the new body i.e. NABARD is taking care of theentire financial assistance of rural sector.ii.W-Short term finance to weaker sections : The RBI has continued its

efforts to finance the small farmers, commercial banks were asked tofinance minimum of 20% of their short term loans to small & economicalweak farmers.

iii.M-Short term credit for marketing : In 1977 RBI made ceilings on theadvances for commodities like food grains, oilseeds, etc. For this purposethe RBI brought down the minimum margin limit from 60% to 35% of thevalue of stocks. Similar facilities were extended for distribution offertilizers & limits on marketing of crops.

iv.M-Medium term loans : They range from a period of 15 months to 5years. RBI finances loans for reclamation of land, building & other land

improvement, development & maintenance of irrigation sources,implements, agricultural machinery, etc. conductive to agricultural


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development. The rate of interest on medium term loans is now 3.5%below bank rate. The bank is also approving such loan for gobar gasplants in rural areas too. TIle bank has advised district centralcooperative banks to extend medium term loans to purchase bullockcarts, gas, plants, etc.

v.L-Long term finance: The bank extended long term advances in theinitial period. Since 1949 RBI began to buy debentures of the landdevelopment banks. Now RBI contributes 20% in the debenture issues.

vi.S-Finance for small scale & cottage industries : Reserve Bank hasagreed to finance the handloom industry working in co operative sector.Under the said scheme RBI advances funds first to state co-operativebanks, charging 50% lesser interest rate below bank rate 22 boardgroups are made & RBI finances these group for their production &marketing activities.

vii.R-Floatation of rural debentures : As per the decisions taken byagricultural credit board, the scheme of rural adventures was introducedby RBI for long term finance. These debentures of 15 years period carry5% interest. All this money helps the banks to extend larger loaningactivities in the long term finance.

FUNCTIONS OF SBI IN CO-OPERATIVE SECTOR (F2OR-WC2) :(1) F-Provide finance to societies : SBI provides finance to marketing &

processing societies. It works as a supplementary financer. State bankgives clean advances to apex banks & apex marketing societies & charge7% rate of interest & the margin amount varies in between 25% to 40%.The bank also provides working capital to marketing societies, through

district central banks.State bank provides finance to sugar factories also e.g. ( i) Advances

against sugar stock (ii) Clean credit for working capital (iii) Interimaccommodation on guarantee of state government, etc. (iv) It givesadvances to sugar cane growers also.

(2) W-Working Capital to Industrial Co-operative : The state bank grantsadvances against raw materials .and finished products. Clean loans aregiven on the guarantee from state government or apex bank.

(3) R-Remittance facilities : SBI provides remittance facilities to co operativeinstitutions within certain limits. Some remittance facilities are provided fortransfer of funds, between central office & branch office of LDB's. -

(4) F-Provides finance for debentures Land Development Banks : SBIparticipates in two ways: ( i) Contribution to the debentures (ii) Providesinterim accommodation for floating debentures.

(5) O-Overdraft facilities : The SBI provides overdraft facilities todistrict central banks against government securities at the concessionalrate of interest. It provides direct finance to co-operative societie s againstgovt. guarantee

(6) C-Comprehensive help to consumer co-operative : In this sectorthe SBI provides loans to consumer co-operative for working capital & forhypothecation purposes. Clean advanced loans are also sanctioned to such

societies against gov t. guarantee.


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(7) C-Co-ordination with Co-operative Institution : SBI providescheap credit facilities to the co-operatives without disturbing the integratedrural development programmes . Terms & conditions of advances grantedare liberal & flexible to suit the requirement of different co-operative.Interest rates vary from 7 to 9%.

Therefore it can be said that SBI has played a useful role in augmenting theresources of co-operative banks for financing marketing & processingsocieties, consumer stores & other co-operatives. The All India rural creditreview committee (1969) has pointed out that over the years SBI has evolvedgood operational methods.

Q8. Explain NABARD & various credit schemes provided byNABARD.

A8. NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT (N A BARD):NABARD is a specialised financial institution in the field of agriculture &

rural development. It has been designed specifically as an organisationaldevice for providing undivided attention, forceful direction & pointed focus,to the credit problems of rural sector. Half of NABARD's capital wascontributed by RBI & other half by the government. It has enough financialresources to support agricultural & rural development programmes .

Function of NABARD (ASM-RURAL) :(a) A-It works as a n apex body which looks after the financial needs of

agriculture & rural development.(b) S-It provides short term loans ( upto 18 months) to state co-operatives for

seasonal agricultural operations.(c) M-In provides medium term credit (18 months to 7 years) to state

cooperatives & RRB's for approved agricultural purposes.(d) R-It maintains research & development fund to be used of promote

research in agriculture & rural development.(e) A-t has authority to oversee the functioning of co-operative sector through

agricultural credit development.(f) R- It is entrusted with the responsibility of inspecting central & state co-

operative banks & RRB's.(g) L-It provides long & medium term credit (not exceeding 25 years) for

investment in agriculture to state co-operative banks, RRB's & commercialbanks.

(h) L-It provides long term assistance in form of loans to state government notexceeding 20 years for contribution to share capital of co-operative creditinstitutions.

NABARD & Rural CreditTypes of refinance facilities

Agency Credit Facility

Commercial Bank

Long-term credit for investment purpose Financing working capital requirements of

Weavers Cooperative societies(WCS) &State Handloom Development

Corporations (SHDC)Short-term Cooperative ST (crop & other loans)


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Structure(State coop banks,District Central Coop banks,PACS)

MT (conversion) loans Term loans for investment Purpose Financing WCS for production & marketing

purpose Financing SHDC for working capital by

SCBsLong-term CooperativeStructure (State Coop.Agriculture & rural Dvlpmtbanks, Primary Coop Agri &rural Dvlpmt banks)

Term loans for investment purpose

RRBs ST (crop & other loans) Term Loans for investment purpose

State Governments

LT loans for equity participation in coop Rural Infrastructure development

Fund(RIDF) loans for infrastructurepurposes

NGOs- informal CreditDelivery System

a. Revolving Fund assistance for variousmicro-credit delivery innovation &promotional projects under credit &financial services fund (CFSF) & RuralPromotion Corpus Fund (RPCF) resply.

Q9. Explain the Consumer Rights of under the CPA & RTI Act1986.A9. THE CONSUMER PROTECTION ACT, 1986 - (GRACES) :

The Consumer Protection Act, 1986 is one of the most progressive &comprehensive pieces of legislation. It was enacted for the protection ofconsumers after an in-depth study of consumer protection laws in a numberof countries. It was enacted in consultation with representatives ofconsumers, trade & industry & after having discussions with thegovernment. The provisions of the Act came into forc e with effect from July1987

The Act was amended in 1991 & 1993 to extend its scope & coverage. Thesalient features of this Act are as follows:1. G-Itapplies to all the goods & services unless specifically exempted by

central government.2. C-Itcovers all the sectors whether private, public or co-operative.3. R-It states the following rights of consumers :

a. H-Right to be protected against marketing of goods & services whichare hazardous to life & property.

b. I-Right to be informed -about the quality, quantity, potency, purity,standard & price of goods & services so as to protect the consume rsfrom unfair trade practices.

c. P-Right to be assured, wherever possible to access to a variety ofgoods & services at competitive prices .

d. H-Right to be heard & to be assured that consumer's interest will

receive due consideration .


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e. R-Right to seek redressal against unfair trade practices & exploitationof consumers.

f. C-Right to consumer education .4. E-The Act also envisages establishment of consumer protection councils

at central & state levels, whose main objectives are to promote &

protect rights of consumers.5. S-To provide a simple, speedy & inexpensive remedy of consumer

grievances, this Act envisages three-tier quasi-judicial machinery atnational state & district levels. These are: National Consumer DisputesRedressal Commission known as National Commission, State ConsumerDisputes Redressal Commission known as State Commissions, & DistrictConsumer Disputes Redressal Fora known as District Fora .

At present there are 32 state commissions , one in each state & 555districts besides National Commi ssion. The state government has to setup the National commission with the awareness created by thegovernment consumer associations & the media. The inflow of cases areincreasing day by day

Q10. What are the various heads of cooperativedepartment & administrative working structure atstate level?

A10.


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Q12. Explain basis of rural market segmentation.A12.BASIS OF MARKET SEGMENTATION (GDPB):

Like the urban areas, it is possible to segment the rural markets based on mayvariables such as geographic, demographic, psychographic, socio-economiccharacteristics, exposure to modernization & so on.

(1) G-Geographical segmentation: Geographic location is the most popular basisfor market segmentation. Distinction between urban & rural market is still ofgreat importance. Geographic segmentation is made based on the variables likezones, regions, states, district, towns & villages by sizes, density & climate.

The regional distribution of population is important to market becausesectional differences exist in the demand for many products .These differencesmay be due to climate, religions, states, districts, towns & villages by sizedensity & climate.

(2) D-Demographic segmentation: In demographic segmentation, demographicvariables such as age of the customer group, sex, family size, family life cycle,income, expenditure pattern, occupation, education, language, religion, race,nationality & rural urban base are used for segmentation of market. The size ofthe various age groups has a substantial effect on market for certain product.

In terms of gender, the male market is different from the female market.

Hence, gender is used for segmenting the market for different products such asdress, footwear, cosmetics, jewellery & other products. In the rural areas the


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joint family systems still exist. As a family size increases, consumption ofconsumable will also increase. In such cases family pack or economy refill packsworks very well.

(3) P-Psychographic segmentation: In psychographic segmentation certain

psychographic variables such as social class, lifestyle & personalitycharacteristics are used for segmentation.

Lifestyle reflects the overall manner in which persons live & spend time &money. It is a behavioral concept enabling us to grasp & predict buyer behavior.Lifestyle as a basis of segmentation is quite reasonable & desirable.The rural consumers brand choices are not that different from his

counterparts. But while the brand choices tend to coverage packing preferencedont. By & large, rural preferences is for a smaller packs. Whenever an optionexist incase of durables, premium models are preferred by the rural rich.

(4) B-Behavioral Segmentation: In the behavioral segmentation buyers aredivided into groups on the basis of their knowledge of attitude, the use or theresponse to a product. The different behavioral variables are occasions,benefits, user status, usage rate, loyalty status, buyer readiness stage, &attitude.

Benefits segmentation emphasize on wants & desires of consumers. Benefitssought by consumers are the basic reasons for existence of the marketsegment. The rural consumers are concerned with the utility of the product thanits appearance & sophistication.

Nowadays most 0f the FMCG goods are segment in sachet packs for a ruralconsumers & family packs economy packs for large families. In terms of brandloyalty the rural consumers take a long time to decide on a particular brand.

Q13. Distinguish between urban & rural markets &explain rural consumer rural profile.

A13. PROFILE OF RURAL CONSUMER-(SCROLL -SCHIMBRR):1. S-Size of the rural consumer : The size of rural consumer group can

be understood from the following details provided in the table:Table 14.1- Population of India Rural vs. Urban: 1971, 1981, 1991 & 2001

Populatio

n

1971

%to

Total

Populatio

n

1981

%to

Total

Populatio

n

1991

%to

total

Populatio

n

2001

%to

total

Rural 43.90 cr 80 50.20 cr 76.3 64.1 76 74.2 cr 72.25

Urban 10.91 cr 20 15.62 cr 23.7 20.3 24 28.5 cr 27.75

Total 54.81 cr 100 65.82 cr 100 84.4 100 102.7 cr 100

Rural population forms a major portion of the Indian population asseen in the table. If we consider the state level picture, in several stateslike Uttar Pradesh, 'Rajasthan, Madhya Pradesh & Kerala, the ruralpopulation constitutes more than 80% of the total population. In states

like Bihar & Orissa 90% of the population is in rural areas.


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2. P-Location pattern of rural consumer : The urban population ofIndia is concentrated in 3,200 cities & towns & the rural population isscattered over 6 ,38,365 villages. Statistics shows that out of the6,38,365 villages only 6,300 villages have a population of more than5,000 persons each. About 55% of the villages have population in the

range of 500 people or less. The influence is clear; rural demand isscattered over a large area, unlike the urban demand which is highlyconcentrated.

3. L-Low Literacy level :It is estimated that the literacy level in ruralIndia is 45% as compared to 52% for the entire country. The ruralliteracy in the rural area is on an increase. Among the ruralpopulation Kerala tops with 77%. However the literacy rates are muchlower in Bihar & Rajasthan. Due to this the hoardings & print mediacanno t make a significant impact. L iteracy rate has its implication incommunication with the rural population. It appears that

communication should not prove a hurdle, provided appropriatemeans are chosen.

4. I-Rural income : An analysis of the rural income pattern reveals thatnearly 60% of the rural income is from agriculture. Rural prosperity &the discretionary income with the rural consumer is directly tied upwith agricultural prosperity. A large part of the income is spent onmeeting the basic necessities of life i.e. food, clothing & shelterleaving a smaller portion for other consumer goods.

5. S-Rural savings : The rural consumers have been drawn into the

saving habit in a big way. The commercial banks & the co operativeshave been marketing the saving habit in the rural areas for quitesome years. Today nearly 70% of the rural households are saving apart of their income. The habit is particularly widespread amongsalary earners & self-employed non-farmers.

6. R-Reference groups : In rural areas the primary health workers,doctors, teachers & the Panchayat -Raj members belong to thereference groups. The ' Baniya ' or Mahajan who is the village tradermay also be an important influence in the decision making process ofthe rural consumers. This is due to the credit extended by them tothe farmers.

7. O-Occupation : In rural area the main occupation is farming, trading,craft & other odd jobs, like plumbing, electrical work, masonary work,carpentry etc. There are teachers & primary health workers too. Therural people carry out different types of farming activities like growingcrops, cattle & pouting farming, horticulture, sericulture, floricultureetc. The consumption pattern differs according to the level of income.

8. M-Media habits : The rural folk are very much fond of music &

folklore. 'TAMASHA' is a popular form of entertainment in


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Maharashtra. Likewise in Uttar Pradesh 'NAUTANKI' entertain the ruralcustomer & then there are television, radio & videos too.

9. C-Conscious customer : A rural customer though not well educated hasgood common sense & he is wise & sharp in many ways. He/she is very

conscious of "Value for money". He/she does no always look for cheapproducts but wants good quality.

10. B-Brand loyalist : Rural customers sense a patronizing attitude & evenformidable barriers to protect themselves. It is not easy introduce newproducts for them. They are bigger brand loyalist than their urbancounterparts.

11. I-High degree of involvement : There is a high degree of involvementin the purchase of any product more so of expensive consumer durable.A typical rural customer checks & re-checks the expensive producthe/she is buying. A rural customer cannot be pushed too far as there isno urgent requirement for the product.

12. C-Inter-personal communication : Inter-personal communication skillaccounts for 80 percent of the rural communication process in thevillages. This means that word of mouth recommendations by users &sheer familiarity influences rural folk in their purchase decisions.

13. C-Consultation : Very often, dealers act as consultants & so theirinfluence carries a lot of weight at the point of purchase. Decisions

regarding the brand of consumer durables are taken by the man in thehousehold in consultation with others in the community .

14. S-Significant aspects : It can be seen in general sense low purchasingpower, low standard of living, low per capita income, low literacy level &over all low social & economic positions are the traits of the ruralconsumers.

By & large, Indian rural consumers are a tradition bound community,religion, culture & superstition strongly influence their consumption habits.

Urban Market Rural MarketEnvironmenta. Large contiguous settlement

units of concentrated townsb. High infrastructural levelc. High population density per

km2 of spaced. Good physical connectivity &

mobility

a. Small contiguous settlementunits of dispersed villages

b. Low infrastructural levelc. High population density per

km2 of spaced. Good physical connectivity &

mobilityEmployment & incomes

a. Urban occupation & incomes

are more stable & permanentb. Occupation include

a. Rural people work in a less

certain environment.b. Agrarian base, mostly small


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employment in governmentbusiness, industry & serviceorganization

c. Frequency of income receiptspredictable & at regular

intervals

land holdings. Per household& more than 7 0% people insmall agriculturaloccupations.

c. Acute seasonality inincome

receiptsSocial Relations

a. Large number of interactionswith interpersonal persons &less frequent between samepersons.

b. Individuals are less known &identified between membersthe social & settlementsystem.

c. Social norms are less visible.d. Status is achieved.e. Caste influence indirect & of

less strength.

a. Less number of interpersonalinteractions & more frequentinteractions between thesame persons.

b. Individuals are better known& identified.

c. Social norms influencingindividuals are more visible.

d. Status is ascribed &determined by birth in afamily.

e. Caste influence direct &strong.

Marketing Stimuli

a. High product exposure & highexposure to brandedproducts.

b. High ad exposure & highbrand awareness.

c. More convenient buying, highreach, availability of widerange of products & high rateof retail outlet per 1000population.

d. High exposure to marketing(d) researchers & multiplesource of information.

a. Low product exposure & lowexposure to brandedproducts. Low ad exposure,low comprehensions of ads,low brand awareness.

b. Less convenient buying, lowrate of retail outlets per 1000population & low marketreach, availability of limitedrange of branded productsalong with imitation products.

c. Less exposure to marketingresearchers & limited sourceof information.

Q14. Discuss Rural Marketing.A14. Definition

MK Malavya , It consist of 2 words rural & marketing. Rural isan environment & marketing is a process. Their synthesis is ameaningful development authority

National commission on Agriculture, It is aprocess which startswith decision to produce saleable form of commodity. It involves allaspects of marketing structure (financial & institutional) & includesHAGS-TD (Harvesting, Assembling, Grading, Storing, Transport &Distribution)


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Domain of Rural MarketCell 1: It represents flow of product from rural producers to ruralconsumers e .g. bamboo, baskets etc. Occupation involved in ruralmarketing is mainly of blacksmith, goldsmith carpenter, cobbler etc.Cell 2: It represents flow of prod uct from rural producers to urban

consumers e .g. foodgrains , oil seeds sugarcane e tc. & raw materiallike tobacco, oilseeds, brassware, wooden goods etc.Cell 3: It repr esents flow of product from urban producers to ruralconsumers e .g. cigars, fertilizers, HY seeds, cosmetics, tractors etc.

Rural marketing requires a different marketing approachbecause of variation in consumer behavior & income.

Micro Environment1. It is a type of channel & media available to reach out rural

market2. Geographical spreadout market also requires different approach

to this market.Scope of Rural Market - (UP-MID-CAL):

U- UrbanizationP Purchasing power increasesM- Media exposureI- InfrastuctureD- Decision makingC- Changing phase of rural marketA- Alert buyersL- Leaders

Problems of Rural Marketing (CWC-UTI-LPPD)C- Lack of CapitalW- Warehousing problemsC- Communication problemsU- Underdeveloped markets & people

T- Transport problemsI- Improper market organization & staffL- Many Languages & dialectsP- Product positioningP- Low PCI

D- No Dealers

Q15. Overview the Indian rural consumer durableindustry.A15.The Indian consumer durables industry can be broadly classified into

Brown goods White goods

The brown goods segments refers to products such as television, audiosystems, VCRs & VCDs, & those items which are essentially household articles viz.kitchen machines, electric irons etc.

The white goods segment includes products like air conditioners,refrigerators, microwave ovens, washing machines vacuum cleaners, etc. In the


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initial life cycle of this category, the products introduced were mostly white incolour. As a result, this category was named "white goods". However, the launch ofvarious other products in the same colour, the name has been extended acrossother categories also.

According to the Webster's Dictionary, the term "White Goods" is generally

referred to those classes of household appliances that are coated with a coat ofwhite enamel. Nowadays, however white goods with various shades of colourincludes items such as refrigerators, washing/laundering machines, microwaveovens dishwashers, vacuum cleaners etc

Consumer durables goods in India include the following Televisions Washing machines Refrigerators Air conditioners Audio Systems Microwave ovens Dishwashers Vacuum Cleaners VCD/DVD players

Most of the segments in the Indian consumer durables industry are characterizedby intense competence, seasonal demand, entry of new players/expansion of theexisting players, special offers, discount schemes, exchange schemes etc. Recentyears have seen a shift in the market from the unorganized players to organized

players, primarily due to the intense marketing & technological changes brought inby the MNCs & other domestic majors in the industry. Considering this, the majorsin the industry have developed entry barriers like brand names, distributionnetworks & effective marketing strategies, which makes it difficult for fresh playersto enter the sector. With increasing competition, the bargaining power of thecustomers is high due to the availability of many brands.

Consumer durables are no longer considered as luxury items

With increasing competition, price wars, promotional strategies, etc. the concepthas filtered down to the masses & has become a part of household necessities. The

entry of MNCs has fuelled the growth of competition in the Indian consumerdurables industry. Low penetration of consumer durables, liberal policies of thegovernment etc., have attracted MNCs to foray into this sector. Over the yearsMNCs have increased their presence as well as their market shares across varioussegments.

In the current scenario, the competition in the industry is determined more by themarketing & advertising strategies rather than anything else. Creating a brandimage & capturing the mind share of the customers are the talk of the players inthe consumer durables industry. One major phenomenon in the consumer durables

industry is the emergence of the rural market. Now people in the rural areas areshowing an increasing interest towards consumer durables goods. Majors in the


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industry are increasingly realising the need to tap the huge rural market. Forinstance, LG recently launched "Sampoorna", a colour TV targeting the Indian ruralmarket. However, rural consumers are highly price sensitive & attach moreimportance to the functional aspects of the products rather than the aestheticattributes. With the increasing attention of the government's towards development

of rural India, especially rural electrification, the rural demand is likely to increasefurther. Any further increase in the spending of the government in theinfrastructure would only facilitate growth in the industry.

Among the various segments of the Indian consumer durables industry, the colourtelevision segment takes a large share with around 40 percent of the totalindustry size, followed by refrigerators, which contribute 25 percent of theentire industry size. The washing machine & air conditioner segments accountfor 10 percent & 7 percent of the total industry size respectively, & theremaining part is being shared by other segments namely audio systems,microwave ovens, vacuum cleaners, electronic appliances & water purifiers.

FEATURES OF A CO-OPERATIVE SOCIETY (BUD-CEMS):

1. U-Union of Persons: A Co-operative Society is a union of persons. Herepersons out of their own sweet will come & associate together as individualmembers

2. M-Membership: Under See. 6 of the Maharashtra Co-operative Societies Act1960, minimum 10 persons are required to form a Cooperative Society. Whereasno upper limit has been fixed for Membership of a Co-operative Society.However in case of a lift irrigation Co-operative Society, the minimum required

members are fixed at five but it should not exceed more than ten.3. E-Equality: The Principles of Equality & Co-operation are the basis of the Co-

operative Society. The soul of Co-operative Society lies in the essence of co-operation of all its members, i.e. in the co-operative spirit, the willingness &readiness to work for & with others. "Each for all & all for each

4. C-Common Interest : The object of a Co-operative Society is to promotethe common interest & to satisfy the common need of its members.

5. S-Spirit of Service : A Co-operative Society is characterized by the spiritof service that generates the feeling of loyalty & fellowship & also acorporate feeling among the members. This concept of spirit of service isbased on the motto: "TO HELP PEOPLE IS TO HELP THEMSELVES."

6. M-Part of Co-operative Movement : A Co-operative Society is notmerely a business run on a Co-operative basis but a healthy combinationof business run on a co-operative basis, with a moral background & highdeals. The Co- operative Movement is characterized by a new spirit whichenables members of the Co-operative Society to follow the Golden Motto"LIVE & LET OTHERS LIVE IN PEACE."

7. B-Body Corporate : A Co-operative. Society once registered becomes abody corporate by the name under which it is registered with perpetualsuccession & a common real.

8. D-Declare Dividend : A Co-operative Society can declare a dividend out

of the profits made by the~ society, which is paid in proportion to theshares held by members


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URBAN BANKS DEPARTMENT OF RESERVE BANKOF INDIA:The Urban Banks Department of the Reserve Bank of India is vested with theresponsibility of regulating & supervising primary (urban) cooperative banks,

which are popularly known as Urban Cooperative Banks (UCBs).While overseeing the activities of 1926 primary (urban) cooperative banks,the Urban Banks Department performs three main functions: regulatory,supervisory & developmental. The Department performs these functionsthrough its 17 regional offices

(I) Regulatory Functions (BENS)(i) N-Licensing of New Primary (Urban) Cooperative Banks:For commencing banking business, a primary (urban) cooperative bank, as in thecase of commercial bank, is required to obtain a licence from the Reserve Bank ofIndia, under the provisions of Section 22 of the Banking Regulation Act, 1949 (AsApplicable to Cooperative Societies).

(ii) E-Licensing of Existing Primary (Urban) Co-operative Banks:In terms of sub-section (2) of Section 22 of the Banking Regulation Act, 1949 (AsApplicable to Cooperative Societies), the primary (urban) cooperative banksexisting in the country as on March 1, 1966, (when some banking laws were appliedto VCBs), were required to apply to the Reserve Bank of India.

They were given three months to obtain a licence to carryon banking business.Similarly, a primary credit society which becomes a primary (urban) cooperativebank by virtue of its share capital & reserves reaching Rs. one lakh (Rs.l,OO,OOO) &

above was to apply to the Reserve Bank of India for a licence within three monthsfrom the date on which its share capital & reserves reach Rs. one lakh. The existingunlicensed primary (urban) cooperative banks can carryon banking business tillthey are refused a licence by the Reserve Bank of India.

(iii) B-Branch Licensing:Under the provisions of Section 23 of the Banking Regulation Act, 1949 (AsApplicable to Cooperative Societies), primary (urban) cooperative banks arerequired to obtain permission from the Reserve Bank of India for opening branches.

(iv) S-Statutory Provisions:

The regulatory functions of Urban Banks Department relate to monitoringcompliance with the provisions of the Banking Regulation Act, 1949 (As Applicableto Cooperative Societies) by urban cooperative banks. These provisions include:(a) Minimum Share Capital: Under the provisions of Section 11 of the BankingRegulation Act, 1949 (As Applicable to Cooperative Societies), no primary (urban)cooperative bank can commence or carryon banking business if the real orexchangeable value of its paid-up capital & reserves is less than Rs. One lakh.(b) Maintenance of CRR & SLR: As in the case of commercial banks, primary (urban)cooperative banks are also required to maintain certain amount of cash reserve &liquid assets. The scheduled primary (urban) cooperative banks are required tomaintain with the Reserve Bank of India an average daily balance, the amount ofwhich should not be less than 5 per cent of their net demand & time liabilities inIndia in terms of Section 42 of the Reserve Bank of India Act, 1934. Non-scheduled


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(urban) cooperative' banks, under the provision of Section 18 of Banking RegulationAct, 1949 ,(As Applicable to Cooperative Societies) should maintain a sumequivalent to at least 3 per cent of their total demand & time liabilities in India onday-to-day basis.

Sr. NoCategory of bankMinimum SLR holding in Government & other approved securities as percentage ofNet Demand & Time Liabilities (NDTL)

(1) Scheduled banks 25%(2) Non-Scheduled banks

(a) with NDTL of Rs.25 crore & above(b) with NDTL of less than Rs,25 crore

(II) Supervisory Functions:To ensure that the UCBs conduct their affairs in the interests of the depositors &also comply with the regulatory framework prescribed by the Reserve Bank of India,the department undertakes on site inspection of these banks with frequencyranging from one to two years depending upon the financial condition / status ofbanks. The thrust of supervision is to ensure that banks' affairs are not conductedin a manner detrimental to the depositors' interest & also to assess the solvency ofthe bank vis-a-vis its liabilities, besides examining the banks' compliance with theexisting regulatory framework. The department also undertakes off-site surveillanceof scheduled banks & non-scheduled banks with a deposit base of Rs. 100 crore &above based on a set of quarterly & annual returns.

(III) Developmental Functions:With a view to extending institutional credit support to tiny & cottage units, theReserve Bank of India grants refinance facilities to urban cooperative banks underthe provisions of Section 17 of the Reserve Bank of India Act, 1934, The refinance isgiven at the Bank Rate.

Training is imparted to the middle & top management of urban cooperative banksthrough College of Agricultural Banking, Pune.

(IV) Sections / Divisions of Urban Banks Department: (L-BARS)1. A-Administration: This Section handles staff matters of the department.2. L-New Bank Licensing & Branch Licensing: This section frames policies for

issue of bank licence/allots centres for opening of branches & authorizes regionaloffices to take action accordingly. It also deals with conversion of cooperativecredit societies into urban banks

3. R-Returns : Returns section at each of the regional offices is responsiblefor monitoring receipt of various statutory returns under the provisions ofBanking Regulation Act, 1949, (AACS) & Sec 42 of Reserve Bank of IndiaAct 1934 in case of scheduled UCBs. They also verify compliance with theprovisions of the Acts, ibid, & take suitable action against non-compliantUCBs.

4. S-Banks Supervision : This division arranges inspection of urbancooperative banks through regional offices & closely monitors the action


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taken by the UCBs to rectify the irregularities/deficiencies pointed out ininspection reports. The division also associates itself with the RCS ofrespective states in rehabilitation of financially weak UCBs.

5. B-Banking Policy: This section frames policies on prudential norms,investment policies, monitoring priority sector targets, refinancing, issue

of directives on interest rates, CRR/SLR, etc. Policies relating to parabanking activities such as merchant banking, hire purchase, leasing,insurance business, etc. are also formulated by this division. Besides, thesection also attends to compliance with the directions of Local Board /Central Board / BFS, furnishes requisite material for Bank's publicationssuch as Annual Report, Report on Trend & Progress of Banking in India,Currency & Finance, etc

STRENGTHENING & DEVELOPING OF AGRICULTURAL

MARKETING:RECOMMENDATIONS OF EXPERT COMMITTEE:(ME2DI2CAL2-FE2W-DROPS-GV)1. M-PROFESSIONAL MANAGEMENT: There is a need to make government

administered marketing organisations administratively viable & manageriallycompetent in keeping with liberalised trade atmosphere. The marketingactivities are many folded & need liaison & collaboration with relatedorganisation. Market committees including sub-yards, should be headed byprofessionals existing secretaries need to be trained in professionalmanagement of the markets.

2. ECA-ESSENTIAL COMMODITIES ACT: The Essential Commodities act 1955which has resulted in restrictions on storage & free movements of stocks shouldbe repealed to make way for play of free market forces in real sense. A task

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