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Improvement in Grading and Standardization.docx

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University of Manitoba
International Business
INTB 2200
Luming Wang

Improvement in Grading and Standardization: Grading of commodities has 3 main purposes. Firstly it protects the consumers and the producers through the establishment of standards of quality. Secondly it serves as a mean of describing the quality of commodities to be purchased or sold by buyers and sellers all over the country. Thirdly it provides a basis for the payment of premium on the quality of commodities. Further trading on the basis of accepted quality standards makes pricing more precise and equitable. Thereby making the price reporting mechanism more meaningful. In India grades, standards and appropriate trademarks have been developed under the agricultural produce (grading and marketing) act 1937. The agricultural produce is graded under the trademark ‘AGMARK’. This is done in order to ensure good quality both for export as well as the domestic market. The act provided for the fixation of grade designations, which indicate the quality of scheduled commodities of agricultural produce. The grading for other commodities is voluntary. The grading practices of produce at the farmers level need to be emphasized and widely canvassed. This will (it is hope) fetch a competitive price to the grower in the markets compared to the ungraded produce. 9. Remunerative Prices for Farmers: It has been increasingly realised that mere increased production could be of little avail so long as the excess production failed to reflect itself in the shape of some extra income to the producer. How to ensure an economic and remunerative return to the producer; how to establish a relationship between the price return and the quality of a produce; how to provide a self-propelling incentive for the maintenance of a standard which will bring the maximum return: how to prepare the produce for the market, how to grade and differentiate – how to pack and transport; what security and what facilities the producer should get in the market; how to keep him informed of market trends and prices; how to keep him abreast of consumer preferences – these have
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