Grading and

Standardization
AM 1
Grading
 Meaning - Grading means sorting of unlike lots of
produce into different lots according to quality
specification laid down. Each lots has substantially the
same characteristics as far as quality is concerned.
Grading is an important function of standardization. It
implies the division of products into classes made up of
unit possessing similar characteristics of size and
quality. Grading is mostly done in case of raw materials,
mineral products and agricultural products.

 The grade standards for commodities are fixed first and

then the commodities are sorted out according to
accepted standards.
Standardization
 Meaning - Standardization is the process of
fixing certain norms for the products. These
norms are established by customs or tradition
or by certain authority.
 It involves determination of basic characteristics
of a product on the basis of which the product
can be divided into various groups. It also
means determining the standards of products to
be produced with regard to size, colour, form,
weight, shape and quality. Standards are model
products, which form the basis for comparison.
Types of Grades
 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, roundish, oblong etc.

 Flavour – which in turn speaks of taste or class

 Ripeness – raw, semi-ripe, ripe in case of fruits, oilseeds, pulses and cereals.

 Length of staple – in case of cotton and jute.

 Location oriented – like Goa Alfanso, Bydagi chillies, Baiganpalli mango,

and Nagpur orange

 Nasik grapes – having specific tastes, shape, colour etc.

Types of Grades
 Grading may be done on the basis of fixed standards or
variable standards. It is of three types:

 1. Fixed or Mandatory Grading:

 Goods are sorted out according to the size, quality and
other characteristics which are of fixed standards. These do
not vary over time and space. It is mandatory for a person
to follow these grade standards if he intends to sell graded
products.

 The use of mandatory standards is compulsory for export

of the agricultural commodities to various countries.

 The Government of India has made standards based on

size, quality and other characteristics which are fixed
standards hence mandatory for exporters.
2. Permissive or variable grading
 The goods are graded under this method
according to standards, which vary over time.
The grade specifications in this case are fixed
over time and space, but changed every year
according to the quality of the produce in
that year.
3. Centralized/Decentralized grading:
Under the centralized grading system an authorized marketer either sets up own

laboratory manned by qualified chemists or seeks access to an approved grading

laboratory set up for the purpose by authorities. Grading in respect of commodities such

as ghee, butter and vegetable oil, where elaborate testing facilities are required for

checking the purity and assessing the quality has been placed under the centralized

system.

Under the decentralized system, the state marketing authorities under the overall

supervision and guidance of the Directorate of Marketing and Inspection (DMI) implement

the decentralized grading system. This system is followed in those commodities which

do not have elaborate testing arrangements for assessing the quality.

Eg. Vegetables, fruits, eggs, pulses and cereals, the grades for these produce are

determined on the basis of physical characteristics.

4. Grading at producers level:

 Under this programme, free grading services are

provided to the farmers for sorting the produce before
offering for sale. This enables them to realize prices
commensurate with the quality of produce. Several
regulated markets and warehouses are manned with
grading personnel with the central assistance.

 Farmers on their own also do grading, which is actually

categorizing as per their own thinking. Farmers do only
from the point of view of getting fair rates to their
produce. Marketing agents also develop some expertise
in gradation of agricultural produce and their opinion is
given importance in price fixing and negotiations.
Advantages of Grading:
 1. Large scale production: Grading helps in large scale production
and expanding the market. Even sellers and buyers situated at
remote and far off places can enter into agreement for buying and
selling on the basis of grades.

 2. Quality assurance: The buyer is assured of quality

 3. Pricing: Grading helps the producer to get higher price for the
commodities.

 4. Facilitate selling: Graded products can be sold easily in the

market. Grading facilitates marketing, for the size, color, qualities
and other grade designations of the product are well known to both
the parties, and there is no need on the part of the seller to give any
assurance about the quality of the product.

 5. Future Trading: Prices and Terms of sales can be easily decided

 6. Bank facilities: The Banks are willing to advance loan since the
prices of graded commodities can be easily established.
Problems in Standardization & Grading:

The techniques of standardization and grading have not been developed

fully in India. There are various problems in their way. Some are as follows:

 1. Lack of Standards & Grades: For many products standards have not
been developed.

 2. Misuse of Standards & Grades: Many producers use standards and

grades in an authorized manner. There is lack of feeling of responsibility
and national character among our producers and it is a big hindrance in
the development of standardization and grading

 3. Lack of Public Consciousness: Reasons being (i) low standard of living,

(ii) Illiteracy, (iii) Dominance of rural population.

 4. Lack of Testing Facilities: Manufacturers feel the difficulty if getting

these standards and grades to be tested.

 5. Lack of Facilities: Many industrial enterprises and manufacturers do not

like to indulge themselves because of this reason.
Problems in Standardization & Grading:

The grading of agriculture produce has not made much progress in

our country for the following reasons

 1. Some of the agricultural products are perishable and even graded products, by the
time they reach the consumers, deteriorate in quality resulting in customer complaints.

 2. Grading agriculture products is more difficult since the producer has to examine
each and every product for grading.

 3. The producer does not get higher prices for graded products since the consumers
are not very quality conscious in most of the markets.

 4. Common man does not understand the grading system.

 5. Grades such as, C,D makes a negative impression with consumers although the
difference may be only marginal.

 6. Consumer preferences vary and based on number of factors and are therefore very
difficult to meet their individual requirements.
AGMARK:
 The Directorate of Marketing and Inspection (DMI), headed by Agricultural Marketing
Advisor to the Government of India (AMA), implements agricultural marketing
programmes of the Central Government, under the supervision and control of the
Central Ministry of agriculture.

 Quality control of agricultural commodities is the responsibility of the Directorate of

Marketing and Inspection. The Directorate has specified grade Standards of various
agricultural products under the Agricultural produce Grading and marking Act 1937.

 AGMARK is a certification mark employed on agricultural products in India, assuring

that they conform to a set of standards approved by the Directorate of Marketing and
Inspection, an agency of the Government of India. The AGMARK label indicates the
quality and purity of the product based on the prescribed standards. AGMARK is
done for commodities of internal consumption like ghee, vegetable oil butter, etc. 

The AGMARK label indicates the products meet curtain standards of purity and
quality. Labels of different colors are used to indicate the grade of the products.
Strict procedures are followed and rules are laid down to ensure conformity to the
standards set as per the grade given. Quality check and tests are done to maintain
standards. Consumers are ensured value for money and can comfortably by a
product without fear.
AGMARK:
 Grading of Commodities:
 A) Agricultural commodities: The agriculture produces grading and marking
act 1937. This act provides for grading and marking of agriculture
commodities. The act authorizes the central government to frame rules
relating to fixing of grades standards and the procedure to be adopted for
grading the agriculture commodities included in the schedule. This act was
amended in 1986. The amended act seeks to review the provisions of the act
strengthen the same with a view to promoting and protecting the interest of
the consumer and makes the penal provisions of the act more deterrent.

 B) For manufactured commodities: The Indian Standards Institutions

(Certification Marks) Act, 1952
 Manufacture products are graded in accordance with the standards laid down
by the Indian Standards Institutions established under the act and graded
products bear the ISI label. The name of the Indian Standards Institution has
been changed to Bureau of Indian Standards (BIS) under the Bureau of Indian
Standards Act 1986. The scope of the activity has been enlarged with greater
trust to consumer protection improving the quality of Indian products and
providing of larger networks of testing and consultancy sevices.
 AGMARK CERTIFICATION SCHEME

 Directorate of Marketing & Inspection (DMI) in the Department of Agriculture, Cooperation and Farmers Welfare, Ministry of

Agriculture, is implementing the provisions of Agricultural Produce (Grading & Marking) Act, 1937.
 The Act empowers the Central Government to make Rules for

(a) fixing grade designation to indicate quality of any scheduled article.

(b) Defining the quality indicated by every grade designation and

(c) specifying grade designation marks to represent particular grade designations.

Standards notified as per the provisions of the Act are popularly called AGMARK Standards. These standards differentiate

between quality and 2-3 grades are prescribed for each commodity. Grades help farmers to get prices for agricultural

commodities as per the quality produced by them and consumers get the desired quality. Till date, grade standards for 222

agricultural commodities have been notified. These include fruits, Vegetables, cereals, pulses, oilseeds, vegetable oils, ghee,

spices, honey, creamery butter, wheat atta, besan, etc.

Grade standards are framed in a scientific manner. Samples of agricultural commodities are drawn from all parts of the country

- from the producing area, wholesale markets, etc. and are analysed in Regional Agmark Laboratories spread all over the

country for the identified parameters. Draft standards are framed based on the analytical data obtained. While framing the

standards, the existing standards in The Food Safety and Standards Act, 2006, Codex Alimentarius Commission, International

Organisation for Standardization, etc. are considered. Trade Associations, Research Institutions, etc. are also consulted.

The DMI is implementing the scheme of certification of agricultural commodities for domestic trade and export. The Scheme is

voluntary. For Blended Edible Vegetable Oils and Fat Spread, certification under AGMARK is mandatory as per provisions in The

Food Safety and Standards Act and regulations, 2006.