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Unit 15: Marketing of Agricultural Produce

political compulsions. This crucial influence of policy is one area of concern, in relation to Notes
enhancement of investment ceiling. If the policy implementers are not vigilant, the benefits of
the new changes may be cornered by vested interests.
The opportunities for enhancing productivity in rural industry have not yet been explored. A
study commissioned by the Ministry of Agro and Rural Industries- ARI, carried out by the
Institute of Small Enterprises & Development, Kochi, has come out with several recommendations
relating to targeting employment opportunities as also establishing relevant linkages among
the various programmes of the Ministry of SSI & ARI. These include a strategic reorganisation of
both PMRY and various programmes of the KVIC.

The imperatives for innovation demand a coordinated approach that can energise rural
entrepreneurs. While the public programmes since Independence have focussed on upgrading
technical skills of the rural poor, precious little has been done so far to motivate them into
entrepreneurial activities. This is one area which needs to be emphasised in the coming years.
And this is the way forward, shown by the UN Commission on Private Sector and Development,
in its report entitled ‘Unleashing Entrepreneurship’: “Making Business Work for the Poor”.
Planning Commission Chairman has called for creating a special rural industry fund on the
lines of venture capital fund to meet the multiple and diverse needs of the non-farm sector.
Speaking at the National Convention on Rural Industrialisation, he said such a fund could be
useful in technology up gradation, quality standardisation, and market support including brand
development for sustainable development of village industries. Linking micro markets to the
larger macro markets to provide marketing channels for rural non-farm sector was also critical
for the sustainable growth of the rural economy, he said, adding that private sector participation
in market development, product marketing and brand building should be encouraged. Mr. Pant
said “ policies of the central bank also need to be tailored to ensure adequate lending to the
small and tiny sector entrepreneurs.” On the extant difference in the interest rate being charged
on loans taken by small-scale industries and large industry, he said the issue has been addressed
to a level in the budget but there was still room for more reforms.
Referring to the innate strengths of Khadi and village industry, Mr. Pant said environment-
friendliness and near monopolistic condition were the two advantages which need to be fully
availed of in an era of global consciousness on the adverse effects of pollution.

Implementing Agency

1. KVIC and State KVIBs.
2. National level/State level Khadi and V.I. Federations.

3. Khadi and V.I. Institutions affiliated to KVIC and KVIBs.
4. NGO who have already worked in implementation of programme relating to development
of rural artisans in activities excluding the negative list of KVIC with financial assistance
at least for 3 projects from any Ministry of State/Central Government, CAPART, NABARD
and UN agencies.

(a) Provide improved machinery/equipment to be utilised as common utility facilities
by the nearby unites/artisans to enhance production capacity or value addition of
the product
(b) Provide attractive and appropriate packaging facilities and machineries to the local
artisans for better marketing of Rural Industry Service Centre

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