Grading And Standardization :

Meaning of Grading and Standardization :



In marketing functions, grading and standardization are of great help in pricing and sales activities. This activity avoids confusion and doubts on quality or the mix-up of different quality varieties. Thus by making grades and standards for various products, fairness in rural marketing is ensured.

Meaning of Grading and Standardization :



Common standards enable fair comparison of prices, hence grading units have been set up at each level of cooperative marketing. Standardization:


In rural marketing, two types of standardization are followed: (i) Standardization of weights and measures and (ii) Standardization of quality.

Meaning of Grading and Standardization :



Standardization is the determination of basic limits on grades or the establishment of model processes and methods of producing, handling and selling goods and services. For weights and measures, India has adopted the MKS (Meter, Kilogram, Seconds) system and hence the standards like kilogram, liters will be accepted as practical standards.

Meaning of Grading and Standardization Contd. :



Other practice is that for certain products, different packing standards are followed. In case of cereals and pulses, bags of 100 kg, 50 kg and 25 kg are standard packing. However, for edible oils, 16 kg tin is allowed.

Meaning of Grading and Standardization Contd. :



Only recently, plastic cans and pouches of 10 kg, 5 kg, 2 kg, 1 kg have come up. Similarly for cotton bale, it is 170 kgs and mango baskets contain fruits in dozens. Most of these are traditionally followed practices.

Meaning of Grading and Standardization Contd. :



Standardization of quality is related to attributes like size, color, appearance, texture, moisture content, sweetness etc. Some are measurable and some are assessed by experience and expertise. Some common local language words are used for gradation.

Meaning of Grading and Standardization Contd. :



For example, coconuts are large size, medium size and small size. This category is by approximation. Another categorization is local or 'Tiptur' variety and Ceylon variety. This is judged by appearance and particular outside colors.

Meaning of Grading and Standardization Contd. :



Grading:


Grading is categorizing the produce into different lots, each containing similar characteristics. The characteristics could be one or more of the following type: Size - Big, medium, small, long, short, round, oblong etc.

Meaning of Grading and Standardization Contd. :



Flavour - which in turn speaks of taste or class Ripeness (Grown or seasoned) - raw, semi-ripe, ripe in case of fruits, oilseeds, pulses and cereals Length of staple - in case of cotton and jute.

Meaning of Grading and Standardization Contd. :



Location oriented like



Goa Alfanso mango, Nagpur orange Nasik grapes

having specific tastes, shape, color etc..

Purpose of Grading :


It is a means to describe the quality of produce for sale / purchase activity It protects consumers from unfair trade practices by traders or farmers. It also enables farmers to get price as per quality and grade It works as a basis for fixing price and premium price as per quality.

Advantages of Grading :


It makes price more reasonable to grades and there will be difference in price as per quality Simplification of storage and marketing of different grades Loans can be given based on stored goods as per the grade

Advantages of Grading Contd. :



Easier to understand quality available for each grade in case of bulk sale. Once grading is done and exhibited in terms of size, colour and freshness, no more explanation is required as visual observation of the consumer is adequate. Gradation and keeping products as per grades gives good publicity and client develops automatically

Advantages of Grading Contd. :



Price comparison by consumers is easy due to grade identity. The buyer expects least or no risk in the purchases. Grading helps to create perfect competition in the market as it will set a good standard of equivalent grades and materials competition. Overall marketing cost can be reduced as repeat evaluation, separation and doubts in the mind of consumer are avoided

General Grading Chart :

Inspection for Agro Product :



Inspection is required to decide on control measures to be taken against insects, infestation and spoilage. Inspection is required to take a decision if the produce is fit for human consumption, or it has been deteriorated and can not be consumed. Inspection is required to know the conditions of the whole lot based on evaluation of the sample lot.

Inspection for Agro Product Contd. :



Inspection is required to know the conditions of the whole lot based on evaluation of the sample lot. Inspection is required for fixing price based on how old it is and changes in colour, strength, resale value etc. If material is infested, it is necessary to know if it is very heavy, moderate, negligible or none.

Inspection for Agro Product Contd. :



Quantity inspection is also required to know loss due to rodents, pilferage. Inspection by third party is more helpful to get both unbiased and expert comments. This certainly helps to take appropriate steps in quality control. Periodic inspection is the best way of quality control. It enables to take corrective actions before it is too late.

Inspection for Agro Product Contd. :



Inspection can also be done when kept at middlemen's (traders) shops by taking the goods to the nearest test laboratory and Inspection is randomly arranged by government officers and inspectors to ensure consumer safety.

Quality Control Analysis of Agro Product :



For analysis to find various discrepancies and to understand the grade, the samples need to be taken. Various factors for analysis are as follows: Foreign matter :


Any organic or inorganic material other than grain is in this category. Examples are straw, chaff, weed seeds, dust and earth sand lumps.

Quality Control Analysis of Agro Product Contd. :




Damaged produce :
Internal damage and discolouration is one of the defects in grains. Some will be partly damaged and discoloured. This affects the quality of the food grains.




Immature grains:
Grains that are not properly developed, shrunk in shape and which are still green are to be treated as immature. The crop is cut ahead of its due time.

Quality Control Analysis of Agro Product Contd. :



Admixture:


Different grades of grains are mixed in the lot.

Other grains:


Mix up of some other food grains or oilseeds is to be curtailed.

Types of Grading :


1. Mandatory Grading :


For many of the agricultural produce, certain grades and standards are fixed by Agricultural Marketing Advisor, Government of India. This is done for having and maintaining high standard and clarity of qualities in case of exports of agro-produce.

Types of Grading :


1. Mandatory Grading Contd. :



Farmers are not free to use their own standards and classifications in case of exports. The Government of India has made standards based on size, quality and other characteristics which are fixed standards and hence mandatory for exporters.

Types of Grading Contd. :



2. Permissive Grading:


This forms a category of variable grading. Though standards are followed, the crop quality and size may vary year after year and hence the standards get changed after some time. Farmers can have their own method of standards.

Types of Grading Contd. :




3. Centralized Grading:
An independent body set up by state government authorities, co-operatives, farmers associations or private agencies can take up grading activities. They should have a laboratory and qualified agricultural and chemistry scientists to take up the responsibility as approved agents for evaluation and grading. The facilities are essential for rural produce like milk, curds, ghee, edible oils, refined oil, different types of jams and juices.

Types of Grading Contd. :



3. Centralized Grading Contd. :



These centralized grading institutions are subject to inspection and audit by the officials of DMI (Directorate of Marketing and Inspection). Their periodic inspection and possibility of license cancellation for deviations keeps the laboratory work in order.

Types of Grading Contd. :



4. Decentralized Grading :


DMI authorizes state marketing federations to take care of grading work for certain common daily usable and perishable commodities. This is also done in case of commodities where visual observation itself will give adequate idea about the quality and grade standard. The items normally covered are vegetables, fruits, poultry, meat, eggs, pulses and cereals. Both centralized and decentralized grading methods are done to take care of consumer interest and convenience of operations.

Grade Standard Criteria :



Criteria refers to the basis on which grades and standards are determined. The basis factors are as under : Consumer oriented gradation is very important. Ultimately most of the farm produce is for human consumption and maximum priority therefore is of consumer choice.

Grade Standard Criteria Contd. :



The characteristics of consumer preference like white, jowar, reddish jowar, big size, small size are there and that way jowar is categorized. Next the place of produce is also uttered to highlight quality. For example Bijapur Jowar, Vijayawada Rice, Assam Tea etc. The grade standards should have common terminology and understood in the same manner at the all India level.

Grade Standard Criteria Contd. :



Grade standards set must be easy to understand, explain and measure wherever they are measurable. The standards should have consistency so that frequent changes are not required Evaluation, verification and certification should not be a difficult process and procedure. Farmers cannot afford procedure-oriented complicated gradations

Inspection And Testing For 'Agmark' Grades :



Testing is a part of inspection to determine whether a product conforms to the set standards or specifications. Samples are drawn from farmers, market and stores and then taken for testing. The Government made Agmark laboratories at various cities and important locations specific for certain agro produce.

Inspection And Testing For 'Agmark' Grades Contd. :



Inspection is carried out by government office inspection staffs and not anybody else This means personnel authorized to approve Agmark quality only will be entrusted this task. The central laboratory is it's Headquarters in Nagpur. This is the Apex body of these laboratories.

Inspection And Testing For 'Agmark' Grades Contd. :



It is expected that producers themselves take care of quality aspects and do proper gradation for customer satisfaction. However, most of the farmers and traders do not do it unless it is forced upon them. It is therefore, very essential to periodically do the testing, inspection and checks on traders, farmers and wholesalers.

Inspection And Testing For 'Agmark' Grades Contd. :



This will curb unfair practices and infuse confidence in the consumers. ' Agmark' is the short form of Agricultural Marketing and is the standard quality certification under the CAP (Central Agricultural Produce) Act 1937, meant for grading and marking of agricultural produce. The standards are fixed by Agricultural Marketing Advisor, Government of India.

Inspection And Testing For 'Agmark' Grades Contd. :



AGMARK certification license is given to manufacturers and traders after evaluation. The licensee is expected to follow the procedures and standards laid down for different commodities. Different coloured 'AGMARK' certificates are given for different grades.

Inspection And Testing For 'Agmark' Grades Contd. :



There is a method for fixing the Agmark label. The label is put such that while opening the bottle or container, the label will be seen and had to be taken out before opening the bottle or container. The label bears the date of packaging and date of expiry as per mandatory norms.

Inspection And Testing For 'Agmark' Grades Contd. :



If an AGMARK labeled product is found defective, the shopkeeper will give free replacement. This is one of the conditions prior to issue of labels to the manufacturer. If defects repeat for a particular product, the license to label that product will be cancelled.

Inspection And Testing For 'Agmark' Grades Contd. :



So far the AGMARK brand has got good reputation and known is for free from adulteration of goods. There are about 14000 license holders manufacturing and marketing using the 'AGMARK' certification. Government of India has arranged AGMARK grades for almost all the agro-products and the list is very long.

Inspection And Testing For 'Agmark' Grades Contd. :



It covers all the food grains, fruits, spices, tobacco, oils, oilseeds etc. 153 commodities and their varieties are given specifications for AGMARK certification. These specifications are subject to revision and changes based on improved varieties and based on comments of exports, consumers and market agencies. An example of Agmark specifications for Pulses is shown in the next 2 slides.

Inspection And Testing For 'Agmark' Grades Contd. :

Agmark grade designations and definition of quality of pulses (whole) redgram (Tur/Arhar), Greengram (Moong) blackgram (Urad), Lentil (Masoor), Peas (Matar) and Matki or Moth

Inspection And Testing For 'Agmark' Grades Contd. :

Agmark grade designations and definition of quality of pulses (whole) redgram (Tur/Arhar), Greengram (Moong) blackgram (Urad), Lentil (Masoor), Peas (Matar) and Matki or Moth

Indian Standards for Processed Products Contd. :



Processing of agricultural products is done to suit the tastes and preferences of the ultimate consumer. Many of the agro-products are processed in different ways to get different forms to make them value added products. Some of the examples of processing are as follows:


(i) Sugarcane >> Juice extractions >> Jaggery, Sugar.

Indian Standards for Processed Products Contd. :



(ii) Coco Nuts >> Coconut oil (for cooking and as hair oil) Also, coconut is used in food items and 'chutneys'. (iii) Groundnut whole >> Removal of cover >> Groundnut >> Groundnut oil. Groundnut is used in various forms as a food item. (iv) Fruits >> Fruit juices, jams.

Indian Standards for Processed Products Contd. :



(v) Tomato >> Tomato ketchup, sauce (vi) Mango >> Mango pulp, mango juice, mango pickles.

More examples of agro-processed products are ghee, butter, wheat flour, edible oils, maida, soji (coarse flour), wool, cloth (from cotton), sandalwood oil, rice (from paddy) etc. Several other examples are there for processing of vegetable and animal product.

Indian Standards for Processed Products Contd. :



These are consumed locally and exported. When it comes to exports, the standard is essential for evaluation Standards for processed products are formulated by a Committee, which consists of experts and experienced people in the field, officials of DMI, representatives of research institutes, Agricultural University and even representatives of consumer associations.

Indian Standards for Processed Products Contd. :



The members have some other country standards for reference, get ideas from various members of the Committee and then formulate Indian standards. Based on the Committee's approval, the standards are formed, printed and circulated to all concerned departments and institutions. Once a year, the standards are reviewed by the Committee to make changes if any, based on necessity and suggestions from various sources.

Indian Standards for Processed Products Contd. :



All products are categorized by specific grades and AGMARK certificates will be given only after the minimum required specifications are met. In case of exports, the 'AGMARK' grade is mandatory. Some locations are specific for certain produce for testing, gradations and 'AGMARK' certifications.

Indian Standards for Processed Products Contd. :



For example Ludhiana and Chandigrah are known for wheat and sunflower seeds, Vijayawada, Guntur are known for Rice, Hubli, Raichur for cotton, Bijapur for jowar, Nasik for grapes, Nagpur for oranges, Ahmednagar for sugarcane. Considering the development of these areas, the training centers to train staff for grading are opened as under.


Nagpur - Grading Supervisor's Training Centre Lucknow, Chandigarh, Chennai, Hubli and Surat - Training Centre for staff involved in grading activities.

Indian Standards for Processed Products Contd. :



The gradation matter is not much clear or understood by majority of the consumers. Moreover most of the produce gets graded due to export compulsions or for getting higher price in the market. However, the value of graded products is increasing in the recent past as shown in the next slide. The gradation subject is debatable from the point of view of it's popularity, accuracies and reliability.

Value wise Presentation of Gradation in India :

(Source: DMI, Ministry of Agriculture, Government of India)

India's Progress In Grade Specifications :



During British rule in 1937, The Agricultural Produce Act was formulated, covering grading and processing aspects. The Act has been amended several times as per changing trends in agro-related products and more stringent quality standards required for exports. The AMA (Agriculture Marketing Advisor to the Government of India) is authorized to monitor the provisions of this Act.

India's Progress In Grade Specifications Contd. :



In the beginning stages, the AGMARK was not very popular but now it has 153 commodities listed with different specific grades. The AMA can make suitable changes and modifications in the Act. AMI staff undertakes actual inspection work and can take the tests randomly at any place like market, godowns or farm houses.

India's Progress In Grade Specifications Contd. :



They have authority to cancel license if the produce is not found as per the grade specified on the packing. In India, developing grade culture in practice has been time consuming and an inconvenient process, the main reason being illiteracy. Rural people are with less education and less progress conscious compared to urban people.

India's Progress In Grade Specifications Contd. :



Hence any education and training in rural area is a slow process. Only in the last two decades there is more improvement due to audio-visual (TV) effect. This is the best form of explanation and information specially for the rural public.

Producers Problems In Grading :



Farmers in India are either illiterates or literates to the extent of reading newspapers. Asking them to do high quality work is a difficult task. Some of the common feelings and constraints in grading at the producers stage are as follows: The agricultural produce are perishables and some are fast perishables. Hence there is very little the producers can do about perishables like milk, butter, ghee, fruits and vegetables.

Producers Problems In Grading Contd. :



Producers, especially small and marginal farmers need money and they can't delay the goods sale for grading work. To get uniformity of production in vast area is partly not in control of the farmer. Out of 20 acre land, the produce quality and size may vary from one end to the other. The effects of water and manure varies from point to point. There could be side effects of pesticides in some portions of the crop area. Hence, to get standard produce is not always workable.

Producers Problems In Grading Contd. :



It is felt that in case of grains, grading is not required as the buyer of grains goes by feel and rates. Grading is required only for exports. The expectations, cooking methods, spices type etc. change from region to region and hence to make uniform grades is difficult.