Marketing of Agri Products -MJR-01.06

8/6/2019 Marketing of Agri Products -MJR-01.06

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Janakiraman M

Head ± APC, Chennai

June 1, 2011

Marketing of Agri Products

³Every thing can waitBut not the Agriculture´

Pt. Jawaharlal Nehru



MarketingConcept

1. It is more than selling2. It induces the customer to buy the products.3. It attracts the customer to try for the product.4. Marketing strategies should be always innovative

/ changing to attract the customer & to retain himwith us



W hy Marketing ?

It helps to understand customer needs

It helps to find out ways & means to satisfycustomer needsIt helps to innovate our products.It helps to face competitionIt helps to maximize profits & to ensureBusiness Development



Essentials of Marketing ± 7 P¶s

1. Product

2. Price3. Place4. Practice / Procedure5. Promotion

6. Performance7. People



Marketing ± Corporate Clients

PreappointmentPunctualityChecklistTAT ± Credit delayed is credit deniedSaying No & continuous touchPersonal grooming



Marketing ± Retail Clients

Market StudyE conomic Agri ActivitiesData ± Market share, Major activities financed & Recovery

Percentage activity wise, historic data (Source ± PLP) New Business VenturesFeedback from existing customers

Creating visibility (E

xtn activities)Data BaseFarmers ClubCheck List with application



Farmers` Club

Credit must be used in accordance with the most suitablemethods of Science and Technology

Terms & Conditions of Credit must be fully respected

A part of additional income created by credit must be saved

Loan instalments must be repaid regularly so as to recyclecredit



Farmers` Club - Benefits

Deposit mobilisationCredit flow & Diversification

New business avenuesImprovement in Recovery and NPA positionReduction in transaction costsE nhances bargaining power

Socio-economic developmentE xtended Arm of the Bank



RequirementsH ave the knowledge about the products

Discuss with officials working in respective vertical and give leads to

them.

Get reference from the customer to have credit worthy customer.

Read the products /Circulars whether it has relevance or not at

once.

Know current ROI , PC ie BBR , BPLR etc.,

Find the requirements of the customer by discussion.



Identifying the clientsBackground of the customer CIBIL, RBI Defaulter list: W illful, Defaulting borrowersand Caution AdvicePresent Loan portfolio: Sanction letters, account statement

Need for Finance ± all the depositor may not be creditworthy customer)

Observe the unit operationsIT Returns/ Financials of last 3 yrsObserve the transactions in the account



Due DiligenceKYC Compliance

Details of Family membersDetails of Agriculture Land

Infrastructure facility: Irrigation/ Assets owned

Income Details: Main source, from allied activities

Present Banking arrangements: Bank, branch, amount, RoI, Credit

history

Security verification



General

Guidelines

Parameters:CR: 1.25 , TOL:TN W : 3 to 3.5:1,ICR: 2, DSCR: 1.5

Profit making for the past 2/3 years

Investible G rade/above cut off score

Satisfactory Credit history

Margin: 25% on stock, 25-50% on book debt, for TL: 15-25 %PC: 0.50 to 1.00 % of the loan amount.



Change of Agriculture intoAgri Business

H itech cultivation- Floriculture, Vegetable cultivationH orticulture

Mushroom CultivationSeed Production- Processing plantsAgriculture allied activities becoming industrial activity like;

Integrated Poultry farmingCommercial Dairy farming

Fish & Prawn/ Shrimp farming

Agro processing



Credit Flow to Agri.

Production Processing Storage MarketingStorage

All kinds of Direct

Agri lending

Storage facility& WHR

Term Loan,WC Loan

ContractFarming,

Base Dose,H&T,

LACR-JLG

Cold Chain

Term Loan,WC Loan



Product wise-Key factors

KCCS

Big Farmers list, Farmers club

KCC`s requirement for entire year W C maintenance + Consumption alsoCrop Insurance

Annual Review- operations in the accountSubvention



Poultry

Layer Broiler

Parent Breeding Commercial Farming

Own production Contract Farming

System of RearingLayer : 1+1+3

1+1+5Broiler : All in all out

Minimum E conomic Size

Feed ManufacturingPledge Loans NPA Norms



Dairying

Rearing of Animals Commercial Dairy-Liquid Milk

Individual Farmers Dairy Tie-up Contract Arrangements

Lactation Schedule

Disbursement in batches

NPA Norms



Farm MechanizationBig Farmers, Scope for own use

Close Monitoring as yearly installments

E nd use verification



H orticulture Development

Long G estation period- Suitable Moratorium

Recovery of Interest FirstSubsidyAlternate Source of IncomeStage wise DisbursementG round water Norms

Soil Profile StudySuitability of Varieties

NH B cost Norms



Thank You

Documents

Marketing of Agri Products -MJR-01.06