A STUDY ON MARKETING MANAGEMENT IN EDIBLE OIL IN REGIONAL OILSEEDS GROWERS' CO-OPERATIVE SOCIETIES UNION LIMITED, RAICHUR
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Date
2001-08-08
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UNIVERSITY OF AGRICULTURAL SCIENCES GKVK BANGALORE
Abstract
Investigation was conducted to study the marketing management m edible
oil of the Union. The primary data were collected by discussion with personnels
and personal observations. Secondary data were obtained from the annual reports
and records of the union. The data were analysed using tabular" and various
statistical techniques.
The quantity of sunflower seeds procured by the union in the project area
was maximum (54.89%) followed by groundnut and safflower seeds. The union
crushed only 51.35 per cent of oilseeds over the study period. The average share
of oilseeds procurement by the union over the study period was just 0.85 per cent
to the total quantity of oilseeds produced'marketed surplus in the project area.
Tlie capacity utilization of oil mills/expellers, solvent extraction and refinery
plants were used to a maximum of 22.32 per cent, 13.34 per cent and 6.25 per
cent, respectively. The groundnut oil alone constituted 94.87 per cent of the total
oil consumption. As per 1991 census, 78.27 per cent of the total population,
consumed only 24.73 per cent of oil by the rural market and the urban market
which consisted of only 21.73 per cent of the total population consumed 75.27 per
cent of oil to the total oil consumption. The groundnut oil positioned at higher
quality and at higher price by the union, and vice versa in sunflower oil than
Competitors.
It is implied that if strictly cost reduction measures followed by the Union
at least at par with the competitors in over heads in pricing system for a quintal of
oilseeds, quote more price Rs. 18.76 in tender at APMC Market Yard than
Competitor-II and less Rs. 8.19 than Competitor-I. If proposed Union gate
procurement concept, is introduced by the Union shall announce Rs. 143.25
comparatively more than existing pricing system without affecting the percentage
of its margin. The seasonal indices of either groundnut and sunflower prices were
found to be maximum in the month of August. The sales promotion measures
adopted by the union did not increase the sales realization. The institutional
channel was not followed by the Union. The Union is dealing through divisional
offices in rural areas. Stockists' commission was not paid by the Union at par
with Competitors. The main problems faced by the union were lack of working
capital, strong competition in procurement of oilseeds and geographical
disadvantage.
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