by Institutional support plays a crucial role in strengthening rural marketing by empowering rural producers, improving access to markets, providing training, and supporting income generation. Key institutions such as Non-Governmental Organisations (NGOs), Self-Help Groups (SHGs) and Cooperative societies help rural communities overcome financial, social, and marketing challenges. They act as intermediaries, facilitators, and capacity builders, enabling rural producers to access resources, information, and markets.
Role of NGOs in Rural Marketing
- Market Linkage and Intermediation
NGOs help rural producers connect with larger markets by acting as intermediaries between producers and buyers. They assist in identifying demand, improving quality standards, and promoting products such as handicrafts, organic produce, dairy items, and handmade goods.
- Training and Skill Development
NGOs conduct capacity-building programs to train rural people in production techniques, packaging, quality control, branding, and marketing. This improves professionalism and helps rural entrepreneurs compete in organized markets.
- Promotion of Rural Enterprises
NGOs support the establishment of village-level enterprises, micro-businesses, and women’s economic groups. They also help in accessing raw materials, adopting better technologies, and improving productivity.
- Awareness Creation
They create awareness about government schemes, rural markets, consumer preferences, and modern marketing practices. By educating rural producers, NGOs help them make informed decisions.
- Support in Fair Trade and Ethical Marketing
NGOs often promote fair trade, ensuring rural producers receive a fair price for their products. They help build trust-based marketing networks and eliminate exploitative middlemen.
Role of Self-Help Groups (SHGs) in Rural Marketing
Self-Help Groups are small, community-based groups—mostly of women—that collaborate to save money, access credit, and run micro-businesses. Their role in rural marketing has become significant, especially under schemes like DAY-NRLM.
- Production and Collective Marketing
SHGs produce goods such as pickles, spices, handicrafts, textiles, candles, papad, and organic items. They collectively market these goods at village fairs, haats, exhibitions, and urban markets. Collective selling improves bargaining power and reduces costs.
- Access to Microfinance
SHGs help rural women access loans through banks without collateral. This enables investment in micro-enterprises, agriculture, livestock, and small shops. Financial empowerment leads to enhanced marketing capabilities.
- Branding and Packaging Initiatives
Many SHGs are trained to develop local brands, attractive packaging, and standardized products. Some SHGs operate under government-supported brands (e.g., “Saras”, “Amul Women’s SHGs”, “Aajeevika Brand”).
- Strengthening Local Supply Chains
SHGs help connect rural producers with consumers through their micro-enterprises. They often supply goods to cooperatives, NGOs, government stores, and private companies (e.g., HUL’s Project Shakti).
- Women Empowerment and Social Inclusion
SHGs empower women economically and socially. As they participate in group enterprises and marketing, they gain decision-making power, leadership skills, and community recognition.
Role of Cooperative Societies in Rural Marketing
Cooperatives are member-owned institutions that support rural producers by facilitating collective production, procurement, processing, and marketing. India has a strong cooperative structure across sectors like milk, sugar, handlooms, consumer stores, and agriculture (e.g., Amul, IFFCO, KRIBHCO).
- Collective Production and Procurement
Cooperatives pool resources from farmers or rural artisans to produce, process, and store goods. This reduces costs, increases efficiency, and ensures consistent quality.
- Eliminating Middlemen
By purchasing directly from members, cooperatives help rural producers get better prices. They protect farmers from exploitation by private traders and moneylenders.
- Large-Scale Marketing and Branding
Cooperatives create strong brands (such as Amul, Nandini, Lijjat Papad) and help rural producers access national and international markets. Through professional marketing, rural products gain wider visibility and higher demand.
- Supply of Inputs and Technical Support
Cooperatives provide seeds, fertilizers, machinery, storage facilities, veterinary services, and training. Better inputs lead to better-quality produce and increased market competitiveness.
- Credit and Financial Services
They offer credit facilities, insurance support, and collective bargaining for loans. This financial assistance helps rural producers expand their production and marketing activities.
- Rural Industrialization
Cooperatives promote agro-processing industries such as dairy plants, oil mills, sugar factories, and handloom units. These generate large-scale rural employment and improve market opportunities.
Government Support Institutions
Although the question focuses on NGOs, SHGs and Cooperatives, some additional institutional support strengthens rural marketing:
- NABARD
Supports SHGs, rural credit, cooperative banks, rural infrastructure and marketing initiatives.
- KVIC (Khadi and Village Industries Commission)
Promotes rural industries, handicrafts, and village entrepreneurship.
- SFAC (Small Farmers Agri-Business Consortium)
Supports farmer-producer organisations (FPOs) and links farmers with agri-businesses.
- Rural Haats and Mandis
Provide low-cost platforms for rural producers to sell directly to consumers and traders.
