IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
A Guided Tour | Recommend | Links | Subscriber Services | Feedback | Subscribe Online
 
The IUP Journal of Marketing Management
Evaluation of Traditional Marketing Channels of Agricultural Produce: Paddy and Rice
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

Agricultural products still reach the consumers by means of traditional marketing channels in most parts of India. This study concentrates on evaluating the efficiencies of traditional marketing channels used by farmers for paddy/rice in Assam. Mainly three traditional channels dominate the agricultural market which are characterized by local agents, small and big millers, besides wholesalers and retailers. Despite the most common observation that farmers always get less returns due to the presence of market intermediaries, the present study shows that for paddy growers of Assam, the farmersí share in the consumersí rupee is moderate ranging between 62% and 68%. The farmersí share has been highest, i.e., 68% of the consumerís price in Channel 2, because of the farmer taking more marketing initiative of his own. Modified Marketing Index and Shepherdís Index show that Channel 2 with Marketing Efficiency Index of 2.13 is the best. Here, the farmersí share is higher due to more marketing initiatives which help the farmers in earning the margin that would otherwise pass on to the local traders. This study would help in formulating the pricing strategies of the corporate retailers for marketing of rice and related products.

 
 
 

In Assam, rice plays a significant role in the state economy as a staple diet with an average monthly per capita consumption of 13 kg and as a major contributor to agricultural GDP. Assam occupies a special place in the rainfed rice production system in the eastern India (being a major rainfed rice-growing area) by covering about 9% of the total rice area and contributing 8% to the overall production. At the national level, the state contributes over 5% of area in paddy cultivation and 4% in paddy production (Bhowmick et al., 2014). Paddy is cultivated throughout the state by small, medium and big resourceful farmers. These farmers producing agricultural produce are scattered in remote villages while consumers are in semi-urban and urban areas.

This produce has to reach the consumers for its final use and consumption. There are different agencies and functionaries through which this produce is channelized and reaches the consumers. Conflicts of interests abound among the functionaries in the marketing channels. The farmerís interest is focused on getting the best return from his produce, which usually equates to maximum price for unlimited quantities. Miller wants least cost and best quality produce from the farmer so that he can sell it at a competitive, but profitable price. Traders and retailers aim at high quality and reliable supplies from the miller/ farmer (directly), at the most negotiable price and the final consumer seeks value for money, i.e., interested in obtaining quality product at a fair price.

 
 
 

Marketing Management, Agricultural products ,Analytical Metrics ,Gross Marketing Margin (GMM),Total Cost of Marketing,Evaluation of Traditional Marketing Channels of Agricultural Produce