An Overview Of Cooperatives And Rural Market


Rural Markets conjure up much imagination in the minds of the sub-continent people. Usually, memories of your childhood spent in different types of bazaars in your native place evoke in one’s mind. India has moved a long way from those times.



Rural marketing is a process that involves pricing, promoting, and delivering rural-based goods and services. These products and services lead to a desired exchange of consumerism with the rural people. 

Let’s take a look at the syllabus before you plan how to undertake it:

I) The Concept Of Co-operation:

Historical Background – Principles – Objectives – Characteristics – Types of Co-operatives – Formation of Co-operatives (Urban Co-operative Banks – Credit Co-operative Societies Housing Co-operative Societies – Labor Co-operative Societies APMC)

Role of CO-operatives – Social and Economic Development – Role of Local Leadership – Competition from Non-Co-operative Organizations. Role of NABARD – State Government – RBI, Urban, Banks Dept.) Federations

II) Legislations Influencing Co-operatives:

Intent and scope of Maharashtra State Co-operative Society Act. 1960 – MSCS Rules 1961 – Consumers Protection Act. 1986 – Right to Information act. 2005 Rights and Duties of Managing Committee – Members – Registrar of Co-operatives – Auditors Challenges before Co-operatives – Strategy to face the challenges Future of Co-operatives in India.

III) Definition and Scope of Rural Markets:

Definition and Scope of Rural Markets

Rural vs. Urban Markets – Rural Marketing Environment – Rural Consumer Profile – Consumer Behaviors – Rural Marketing Mix- Rural Market Segmentation – Targeting and Positioning – Marketing of Consumer Durables – Rural Salesforce Management.

IV) Agricultural Produce Marketing:

Importance – Problems – Lines of Improvement – Regulated Markets. Quality Orientation – Standardization and Grading. 

Role of Financial Institutions in Agricultural Marketing – Innovative Marketing Techniques and Resent Trend in Rural Markets.

Impact of Globalization on Indian Markets – e – choupals – Commodity


1. You have to target each unit logically. Then, try to study each chapter according to the unit detailed in the textbook. Since rural marketing is fairly a new concept, going through units by coincidence may hinder your understanding of the concept.

2. Though the subject deals with many new topics such as ‘role of NABARD’, ‘urban vs. rural markets’, they have appeared in the past. If you studied previously any of these, then mark them and keep them aside for revision later.

3. Don’t waste time on re-memorizing old topics and ignoring new ones.

4. Laws and sections need to be learned correctly, by rote. The same rule is pertinent to definitions.

5. Learning co-operatives may be uninteresting and tedious; the rural marketing part is very interesting. Don’t ignore topics from co-operative just because you find them boring.

6. The second unit deals with Laws thoroughly, tough questions that tend to pull your marks are likely to appear from here, especially if you have a teacher who follows a very strict guideline.


The second major task in rural marketing is delivering an effective distribution channel. This task too has many problems to deal with:

1. Multiple Tiers, Higher Cost And Administration Problems

The distribution chain discussed in the rural context has a large number of tiers to consider as compared to the urban context. In the rural context, at the minimum level, the chain has to consider the village shopkeeper, the wholesaler, etc., whereas at the top level the chain considers the manufacturer’s own warehouses, office operations at selected centers for dealing. Such multiple tiers create a problem for the channel management area.

2. Scope For Manufacturer’s Own Outlets Limited 

Greater Dependence on Dealers: capacity for manufacturer’s direct outlets such as depots or showrooms has to deal with many hindrances in rural markets unlike in the urban context since it is expensive and sometimes unmanageable.

3. Non-Availability Of Dealers: 

There is also a problem with the availability of dealers. Suitable dealers don’t come many even if the firm is willing to start from scratch. The firm may want to try out ranked newcomers; the choice of candidates still has its limitation.

4. Poor Visibility Of Retail Outlets: 

Sales outlets don’t maintain strong viability in the rural market. The scattered character of the market and the array of tiers in the chain use up the extra funds the producer is prepared to part with. Moreover, the business volume is not sufficient to maintain the profitability of all groups and the retail tier is the worst sufferer.

5. Inadequate Bank Facilities: 

Due to a lack of bank and credit facilities, distribution in rural markets is handicapped. 


Rural marketing is an important part of marketing for satisfying rural people’s needs and wants. This type of marketing is also important for organizational objectives. Rural marketing often involves a two-way marketing process. This type of marketing involves rural producers manufacturing products or offering services to rural or urban consumers. 



Last Updated on October 30, 2022 by Magalie D.

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