Pakissan.com; Grading in marketing

Grading is required at many stages of marketing of both raw material and processed products. The size and quality may vary, It is,therefore, imperative to sort the products into lots which is called grading or standardization. Thus grading ensures the uniformity of products.
Grade standards may be described as statutary criteria to avoid disorder and to make life simple, safe, convenient and comfortable. A standard is, however, officially defined as a technical specification, documented and made available to the public. These specifications are drawn up with the cooperation and the consensus of all concerned. Practically based on the consolidated results of science, technology and experience, these are aimed at the promotion of optimum community benefits and are approved by a regulatory authority.

Grading or standardization also clarifies the actual state of technology so that such research goals can be set more rationally for the improvement of actual conditions. Research is thus promoted in almost every sector to obtain better control. Grade standards are the moving force in the improvement of techniques and they open up avenues for the establishment of universal technical basis on which new techniques can be developed.

Realizing its importance, the government has established an Agricultural Livestock Products, Marketing and Grading Department, under the Agriculture Produce (Grading Marking) Act 1937.

Its primary objective is to lay down national standards on different agricultural and livestock products and to implement them on voluntary as well as compulsory basis in order to enhance the productivity of quality products.

Another central body, known as the Pakistan Standards Institute (PSI), was also established in 1958 under the administrative control of the ministry of industries. This institution is an autonomous organization with the main objective of laying down national grade standards for industrial and allied products.

Grading or standardization and adaptation of specific internationally accepted technical standards essentially serve three purposes:

i. Overall economy is improved by increasing efficiency in production.

ii. Consumers are protected.

iii. Safety and protection of public health and life is ensured.

As a signatory and member of the ISO, Pakistan is committed to establish, promote and adapt international standards wherever necessary.

This implies that standards should satisfy the interest of both, the producer and the consumer, which has given rise to more or less universal procedures in formulation of standards through insinuative consultation among the interested parties.

The International Organization for Standardization (ISO), or the International Electro Technical Commission (IEC) has emerged from an international agreement between the independent sovereign nations.

Various promotional activities were initiated to develop and diversify exports.

One of the most important steps in this direction was to project the image of Pakistan as a supplier of quality goods. Quality, being a prime motivational force with consumers is regarded as a bedrock of any sustained export effort. So far, 42 agricultural and livestock items and 24 industrial and allied items of export have been brought under the umbrella of compulsory grading and certification. If exports are to be improved, the scheme of compulsory grading will have to be expanded. To achieve the objective, the Agricultural Livestock Products and Marketing Department and Pakistan Standards Institute need to be strengthened and revitalized.

Grade standards are helpful for orderly marketing of goods and effective application of quality control laws. Unless the commodities are produced to meet certain standards, foreign buyers will have little or no assurance that the commodities purchased would be of given identity and quality. Traders in foreign markets cannot buy with confidence if there are no standards by which they can specify the kind and quality of the goods to be shipped. Therefore, grade standards play a very useful role in facilitating international trade and commerce and provide a common language between the buyer and the seller.

Almost every nation seeks to increase its trade. Expansion of trade largely depends upon demand but is also based upon the confidence that the importer places on the quality of the supplies. This confidence of the importer can be strengthened through an assurance provided by an effective export quality control system which guarantees that the product complies with the standards provided for the sale contracts, if any, under the legislative provisions of importing as well as exporting country.

If the shipments fail to meet the legislative and grade standards requirements of the importing country, or with the quality requirements in the sale contract, it can cause heavy losses to exporters, affect the foreign exchange earnings of the nation, and damage its prestige and economy. Rejection by one country can adversely affect trade with the other nations.As a result of experience over the last five decades, the benefits of grading and standardization that have come to light are summarized as under:

i.Grade standards provide means of communications, means of development and unified understanding of technologies' symbols, marks, labels, codes, etc.

ii. Efficiency of production and economy becomes achievable when standardization is applied in mass production. There are fewer types of products with more rational production methods, the mental load placed on the employees is reduced and their working skills are increased.

iii. Standardization is the basis of quality control and it results in an improved and uniform product.

iv. More rational production based on standardization means a gradual decrease in defects and rejections and hence leads to more saving in materials.

v. Rationalized use and consumption; Standardization insures quality, properties and safety of goods and improves interchangeability. The goods therefore can be used more rationally, with greater safety and extended service life.

vi. Standardization leads to rapid and fair business transactions.

vii. Transfer of technology becomes easy. A firm basis is provided by grade standards for making meaningful use of technology.

Dawn

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