Changing Patterns of Rural Demand – Reasons

The position in the rural market was totally different twenty years ago. At present there is a demand for products like TV, fans, oil engines, readymade garments, medicine, etc. New products like toiletries, baby care products and consumer durables are now getting good demand. Demand pattern of rural markets are changing due to the following reasons:

1. New Employment Opportunities

Earlier the only occupation of people in rural areas was agriculture. Now due to development in rural areas the and also due to agricultural advancement new and exciting careers are emerging. Self-Employment policy with assistance from bank has become great success in rural areas.

2. Green Revolution

Technological breakthrough since 1965 in Indian agriculture has led to many revolutions like Operation Flood, White Revolution, Blue Revolution, etc… Today, rural India generates 210 million tons of food grains per year. It produces 15 million eggs, 90 million broilers, 50 million tons of milk per annum. Due to 2000 EXIM policy, export of Indian farmers has increased considerably.

3. Better credit facilities through banks

All types of loans – short, medium & long-term loans – has helped rural masses in better investment. Co-operative and public sector banks are extending loans to the rural people and creating job opportunities for them.

4. Green Card / Credit Card for farmers

Helps / encourages farmers to buy consumer goods on easily payable credits / installment basis.

5. Improved exports due to Export Policy

Open market, WTO, GATT, has all resulted in better openings / markets, increased income, increased purchasing power.

6. Remittances from Indians working abroad

A sizeable contribution to growing rural income & purchasing power.

7. Expectation Revolution among Rural Masses

Expectation Revolution brought about a powerful change in the environmental dynamics.

Rural Market Patterns

8. Political & Social changes through favorable Government policies

New farm policy, high support price, tax exemption in backward areas, subsidy, etc. Liberalization facilitated contract farming thus the farmer has ready market for their produce

9. Marketing Efforts

Firms like HLL, Bajaj Auto, Godrej soaps, BFL, Brooke Bond, etc. have started penetrating rural market.

10. Media

Role of newspapers, radio, T.V., etc. has given rise to new demand for goods and services. Cable TV has played important role in bringing change in lifestyle and consumption habits of rural people.


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