Int.J.Curr.Microbiol.App.Sci (2018) 7(10): 2505-2512

International Journal of Current Microbiology and Applied Sciences ISSN: 2319-7706 Volume 7 Number 10 (2018) Journal homepage: http://www.ijcmas.com

Original Research Article https://doi.org/10.20546/ijcmas.2018.710.290

Economic Analysis of Coconut Marketing and Constraints in Coconut Cultivation with Special Reference to District of ,

C. Vinodhini1*, K.V. Deshmukh2 and Ajay Kumar Srivastava1

1Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi - 221005, India 2Department of Agricultural Economics, VNMKV, Parbhani, Maharashtra, India

*Corresponding author

ABSTRACT

The paper mainly focuses on marketing of coconut in the study area. Also discusses the key issues in the production of coconut and its marketing, notices some important K e yw or d s suggestions from the coconut growers. Channel I is predominantly found in the marketing of coconut in (Producer – Pre-harvest contractor – Wholesaler – Retailer – Coconut, Consumer). The results revealed that in channel- I price received from pre-harvest Marketing, contractor is Rs. 10000 while cost incurred by producer was Rs. 92. Thus net price Constraints, Price Spread received by producer is Rs. 9908 per 1000 nuts with 88.07 per cent producer’s share in consumer’s rupee. In channel – I marketing cost is Rs.1104 and marketing margin was Rs. Article Info 238. The results revealed that the major constraints faced by more than 81.25 per cent sample growers during production, is unawareness about technical information regarding Accepted:

18 September 2018 post-harvest management practices, and in marketing of coconut, the major problem faced

Available Online: by more than 93.75 per cent of farmers was unawareness about various marketing practices. It is observed that nearly 73.75 per cent of coconut growers suggested to provide 10 October 2018 necessary credit in time and 56.00 per cent of coconut growers suggested to provide subsidies in case of any natural calamities like storm, flood etc. Introduction conditions. However, a rainfall of about 2000 mm per year is perfect for proper growth and The coconut palm is the most useful palm in supreme production. Coconut is grown under the world because every part of the tree is diverse soil types, for instance, loamy, laterite, beneficial to human life for some or the other coastal sandy, alluvial, clayey. Tamil Nadu is purpose. On the whole, the coconut palm is one of the prominent coconut producing states called as ‘kalpavriksha’ which means the tree in the country which has area 461.06 thousand of heaven. The copra obtained by drying the hectares and production, of 6570.63, million kernel of coconut is the great source of nuts and productivity of 14251 nuts/ ha. vegetable oil which contains 65 to 70 per cent Though Tamil Nadu is considered as a oil. It grows under varying climatic and soil prominent coconut producing state of the country, and it is shown as a profitable 2505

Int.J.Curr.Microbiol.App.Sci (2018) 7(10): 2505-2512 venture, the coconut growers are still study area sold their produce to the pre- miserable. It's because of many factors but harvest contractor on a contract basis. Hence most important is agricultural marketing in the study area, only one channel is which is not in favor of farmers but of identified. The marketing channel, identified intermediaries. Since the major part of in the marketing of coconut in the study area marketing is done by intermediaries, they is given below. Channel- Producer – Pre- harras the farmers in many ways and means harvest contractor –Wholesaler – Retailer – due to their weak bargaining power, Consumer. unawareness of market conditions, illiterate. This paper will highlight the issues on Marketing cost of producer production and marketing of coconut in Karur district of Tamil Nadu. The coconut producers, in the study area, sold their produce through particular channels. The The main objectives of this study includes, to cost incurred by them in marketing of one study marketing channels, price spread, thousand coconuts through marketing channel marketing cost and marketing margin of was worked out and the results are presented coconut. in Table 1. We can see that the cost incurred by the producers in marketing of one thousand To identify the constraints on the production coconuts is worked out to Rs.92 in Channel I. and marketing of coconut. Therefore it is understood from the Table 1 that tax and transportation cost accounts for Sampling technique and data description more than 50 per cent of the marketing cost. And other costs like storage cost loading The data was collected for the research during unloading cost commission costs around less November – December 2016 with a multistage than 47 per cent. sampling technique. Karur district was purposively selected as a study area in the first Marketing cost incurred by pre-harvest stage, in the second stage, Manmangalam contractor tehsil was selected on the basis of higher area under coconut. In the third stage, eight From Table 2, we can see that the marketing villages were selected from the selected tehsil cost incurred by the Pre-harvest contractor is on the basis of highest area under coconut Rs.377 per thousand nuts. Among the different production. And in the fourth stage, 10 components of marketing cost incurred, coconut growers were selected randomly from rejection and weight loss formed a major share each village. Thus 80 growers were selected of 38.46 per cent, followed by transportation with equal distribution. cost with 21.22 per cent and establishment and administration cost with 18.56 per cent. These Results and Discussion three costs, put together, constituted 78.24 per cent of the total marketing cost incurred by the Marketing channel, price spread, pre-harvest contractors. The other expenses marketing cost, and marketing margin incurred by the pre-harvest contractors, like loading and unloading, worked out to 11.94 Generally, nuts are harvested by various per cent, incidental charges 1.33 per cent and methods, for instance, collection after the weighment and packaging charges are 1.86 natural drop, with the help of a stick, climbing per cent. The share of expenditure on husking on the tree and plucking, and the combination was 6.63 per cent. of the above methods. All the farmers in the 2506

Int.J.Curr.Microbiol.App.Sci (2018) 7(10): 2505-2512

per cent. Marketing cost of wholesalers The loading and unloading charges and the From Table 3, we can see that the marketing incidental charges accounted for 6.03 per cent cost incurred by the wholesalers is Rs.436 per and 3.02 per cent respectively. It could be thousand coconuts. So it is understood from inferred that marketing cost incurred by the table that the wholesaler spend nearly 75 per retailers was the lowest when compared to the cent of the cost on rejection and weight loss, cost incurred by pre-harvest contractor and transportation cost, and administration cost. wholesaler. This may be due to non-payment The share of expenditure on husking was 5.50 of commission and storage charges. per cent. Price – spread in coconut trade The other expenses incurred by the wholesalers, like loading and unloading, The difference between the price paid by the worked out to 8.25 per cent, market fee consumer and the price received by the constituted 9.86 per cent and Weighment and producer for an equivalent quantity is known packaging 2.98 per cent. These three costs, put as ‘price spread’. The study of price-spread in together, constituted 21.09 per cent of the total coconut marketing is an important aspect marketing cost incurred by the wholesalers. because it reflects the share of the producer and different market functionaries as well as Marketing cost incurred by retailer the cost of marketing, met from the price paid by the consumer. The price spread varies, Table 4 reveals that among various costs depending on the number of intermediaries incurred by the retailers, rejection and weight involved in the marketing channel. Hence, loss had a major share of 48.24 per cent of the more the number of intermediaries, higher is total marketing cost. Cost of transportation the price-spread and vice-versa. Generally, the was the second major item accounting for channel having the lowest price-spread is 31.65 per cent, followed by establishment and preferred. administration cost which accounted for 11.05

Table.1 Cost incurred by the producers in marketing of Coconut

S No Particulars Channel I

Cost (Rs. Per 1000 Nuts) % 1 Transportation Cost 24 26.08 2 Commission/ Brokerage 13 14.15 3 Tax 25 27.18 4 Storage Loss 20 21.73 5 Loading and Unloading 10 10.86 Total 92 100.00

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Table.2 Cost incurred by pre-harvest contractors in marketing of coconut

S. No Cost Components Cost (Rs Per 1000 Nuts) Per centage 1 Transport 80 21.22 2 Husking 25 6.63 3 Loading and Unloading 45 11.94 4 Weighment and Packaging 7 1.86 5 Rejection and Weight Loss 145 38.46 6 Establishment and Administration 70 18.56 7 Incidental Charges 5 1.33 Total 377 100.00

Table.3 Cost incurred by the wholesalers in marketing of Coconut

S No Cost Components Cost (Rs. Per 1000 Nuts) Per centage 1 Transport 75 17.20 2 De-husking 24 5.50 3 Loading And Unloading 36 8.25 4 Weighment And Packaging 13 2.98 5 Rejection And Weight Loss 173 39.69 6 Establishment And Administration 72 16.52 7 Market Fee 43 9.86 Total 436 100.00

Table.4 Cost incurred by the retailers in marketing of Coconut

S. Cost Components Cost (Rs Per 1000 Nuts) Percentage No 1 Transport 63 31.65 2 Loading and Unloading 12 6.03 3 Rejection and Weight Loss 96 48.24 4 Establishment and Administration 22 11.05 5 Incidental Charges 6 3.02 Total 199 100.00

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Table.5 Price-Spread for Coconut

S. Particulars Channel I No Amount (Rs / 1000 Nuts) % 1 Producer Net Price Received 9908 88.07 Marketing Cost 92 0.81 Gross Price Received 10000 88.89 2 Pre-harvest contractor Price Paid 10000 88.89 Marketing Cost 377 3.35 Marketing Margin 123 1.09 Price Received 10500 93.33 3 Wholesaler Price Paid 10500 93.33 Marketing Cost 436 3.88 Marketing Margin 64 0.57 Price Received 11000 97.78 4 Retailer Price Paid 11000 97.78 Marketing Cost 199 1.76 Marketing Margin 51 0.45 Price Received Or Price Paid By Consumer. 11250 100.00 Marketing cost 1104 9.8 Marketing margin 238 2.11 Price spread 1342 11.91

Table.6 Constraints faced by the coconut growers in the production and disposal of coconut

S. No. Types of problems Frequency (N= 80) Per centage (%) 1. Unawareness of different varieties 39 48.75 2. Unawareness about technical information regarding post- 65 81.25 harvest management practices 3. Non-availability of particular fertilizer in time 35 43.75 4. Unawareness of different Government scheme 62 77.50 5. Non-availability of labor in time 72 73.75 6. Problem regarding theft of nuts 25 31.25 7. Credit availability 58 72.50 About marketing 1. Inadequate marketing infrastructure facility 67 83.75 2. Unawareness about various marketing management practices 75 93.75 3. Malpractices of itinerant merchant (weight and rate) 33 41.25 4. Price received is not remunerative 73 91.25

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Table.7 Suggestions to overcome the constraints of coconut growers

S. No. Suggestions Frequency Per centage (N= 80) (%) 1. Awareness regarding introduction of new varieties 35 43.75 2. Spreading new technology through extension 37 46.25 education 3. Provision of Subsidies in case of any natural 45 56.25 calamities 4. Availability of credit in time 59 73.75 5. Availability of fertilizers and chemicals at subsidized 41 51.25 rate About marketing 1. Price announcement through newspapers and other 43 53.75 social networks 2. Direct purchase of stocks by government without 62 77.50 intermediaries 3. Adequate storage and processing facilities 75 93.75 4. Reserve price for nuts 67 83.75

The price-spread is one of the important beneficial to the producer as well as to the factors which will have a definite impact on wholesaler. Price spread analysis shows that the profit margin of the producers. Hence a Channel I is best from the producers’ point of study on the price-spread becomes significant. view. The costs incurred and margin earned by the various market intermediaries in different Constraints and suggestions of coconut channels in the process of marketing of growers coconut per quintal in the study area is presented in Table 5. It is observed from Farmers face many problems during the Table 5, that the producer’s share in the price production of a crop. The following are the paid by consumer is estimated to be around main problems reported by coconut growers 80 per cent in the study area. It implies that in the study area. Though there are many there is not much difference in the net price constraints in coconut production the majority received by the producer whatever may be the of farmers (81.25) mainly claim that they are type of channel he chooses to market his unaware of technical information regarding produce. The marketing cost incurred by the post-harvest management practices as their producer is lower in Channel I, due to the main constraint. So that they could not handle absence of commission charges for the the produce and they are forced to sell to the farmer. The marketing cost incurred by the pre-harvest contractor or whatever the pre-harvest contractor accounts for 3.35per channel they prefer. The second important cent of the consumer price. This is due to constraint they feel is they do not know about sales tax incurred by him. The wholesaler the various schemes implemented by earned a margin of 1.72 per cent when he government, nearly 78 per cent growers purchased from the pre-harvest contractors. reported the same. Then growers (73 per cent) Thus, the channel was found to be more also claim that they do not get labor in time

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Int.J.Curr.Microbiol.App.Sci (2018) 7(10): 2505-2512 and also non-availability of credit in time (73 growers are, spreading of new technology per cent). Some other problems like through extension education (46.25 %), and unawareness of different varieties (48.75 %), creation of awareness regarding introduction non-availability of particular fertilizers in of new varieties (43.76 %). Regarding time (43.75 %), theft of nuts (31.25%) (Table marketing of coconut, the major suggestions 6). provided by the 93.75 per cent of growers are adequate storage and processing facilities and The following are the problems faced by the to fix reserve price for nuts (83.75 %). The coconut growers when they market their other suggestions are, direct purchase of product. Though there are many problems in stocks by government without intermediaries the marketing of coconut, the major problem (77.50 %), Price announcement through faced by more than 93.75 per cent of farmers newspapers and other social networks (53.75 is unawareness about various marketing %). practices. The other constraints faced by the coconut growers are non- remunerative of On the whole, the marketing channel found in price (91.25 per cent), inadequate market marketing of coconut from Karur district was infrastructure facility (83.75 %) and channel - I (Producer – Pre-harvest contractor malpractices of iterant merchants (41.25 per – Wholesaler – Retailer – Consumer). The cent). However, in study area, the common results revealed that in channel- I price problem regarding production and marketing received from pre-harvest contractor was Rs. of coconut faced by sample coconut growers 10000 while cost incurred by producer was was unawareness about technical information Rs. 92. Thus net price received by producer regarding post-harvest management practices was Rs. 9908 per 1000 nuts with 88.07 per and unawareness about various marketing cent producer’s share in consumer’s rupee. In management practices in study area channel – I marketing cost was Rs.1104 and respectively. marketing margin was Rs. 238. The results revealed that the major constraints faced by Suggestions to overcome the constraints of more than 81.25 per cent sample growers coconut growers during production, was unawareness about technical information regarding post-harvest Since the production and marketing is done management practices, and 77.50 per cent of by farmers and they are facing many sample growers were unaware of various problems one has to consider the viewpoint of schemes implemented by the government. In them too. Consequence of this the suggestions marketing of coconut, the major problem of coconut growers are crucial in order to faced by more than 93.75 per cent of farmers solve their problems. There are various was unawareness about various marketing suggestions given by the coconut growers in practices. the study are given below in Table 7. Nearly 73.75 per cent of coconut growers suggested References to provide credit in time and 56.00 per cent of coconut growers suggested to provide Naphade, S. A. and A. S. Tingre. 2008. subsidies in case of any natural calamities like Economics of Production and storm, flood etc. It is also observed that 51.25 Marketing of Guava in Buldhana per cent of grower suggested to avail district of Maharashtra. Indian Journal fertilizers and chemicals at subsidized rate. of Agriculture Marketing. vol. 22(2):32- The other suggestions given by the coconut 41p.

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Periasami. 2015. Problems and Prospects of Sivanesan. R. and S. Prabin 2013. Problems Coconut Cultivation in Erode District. and Prospects of Coconut Industries in International Multidisciplinary Kanyakumari district of Tamil Nadu. Research Journal.Vol.4 (11). International Journal of Management. Vol. 4(6):135-144p.

How to cite this article:

Vinodhini, C., K.V. Deshmukh and Ajay Kumar Srivastava. 2018. Economic Analysis of Coconut Marketing and Constraints in Coconut Cultivation with Special Reference to Karur District of Tamil Nadu, India. Int.J.Curr.Microbiol.App.Sci. 7(10): 2505-2512. doi: https://doi.org/10.20546/ijcmas.2018.710.290

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