Page 56 - MARKETING & PUBLIC RELATIONS EBOOK IC88

10. Connectivity, which used to be a problem in reaching the rural market, is already considerably
eased and would be further eased in the near future.

E. STRUCTURE OF THE RURAL MARKETS

(a) Traditional Markets

1. The Indian rural market consists of

 About 47000 hoots or weekly markets in the villages. These are also called painths or shandies.
These are held on specific days of every week in the villages and are visited by villagers, within a
radius of 5 to 10 kms.

 At the secondary level, there are about 7000 agricultural markets called mandis. These are
permanent places, located in district or other towns, near railway stations. Transactions take
place daily. They are regulated by the state governments.

 At the next level are about 3.8 lakh fair price shops, where essential commodities are sold, at
prices and quantities fixed by the Governments. The number of retail shops in villages is
estimated to be about 30 takhs. The fair price shops are part of the public distribution system
intended to help the poorer sections of society.

 About 25000 melas or festivals are held every year. Some of these are temple events. They may
last for more than one day, as long as 45 days in some places. The kumbh melas in Allahabad
and Uiiain are examples.

2. At the village level, the intermediaries are big cultivators, village merchants, dalals or brokers and also
traveling traders. At the mandi level, there are agents, dalals, and cooperative societies. Cooperative
societies, numbering more than 3000, help the producers with seeds, manure, finance, technology, etc.
and also help them find markets. These intermediaries are in touch with the individuals in these areas
and also have some influence, being partners in business, relatively well to do and perceived as people
`who have seen the world' and therefore, knowledgeable. They travel for their own work and can be
useful intermediaries for insurance.

3. The characteristics of the traditional rural market are

 Long distances to travel to meet people.
 There is a strong influence of caste, hierarchy and tradition.
 This situation is also changing fast.
 The banking network is extensive and has gone into the remote villages, through cooperative
and rural banks.
 TV reaches more villages in the rural area than the newspapers.
 The telephone network, including STD and ISTD, has penetrated deep. States are planning IT
penetration through colleges and schools and setting up internet kiosks in panchayat wards.

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