A Study on Marketing of Banana in Paramathi Velur Block of Namakkal District

The International journal of analytical and experimental modal analysis ISSN NO: 0886-9367

A STUDY ON MARKETING OF BANANA IN PARAMATHI VELUR BLOCK OF NAMAKKAL DISTRICT

Dr. S. SENTHILRAJA Assistant Professor, PG and Research Department of Economics, Kandaswami kandar’s College, Velur-Namakkal. Mobile No : 9865469401 Abstract

The record of development of the population involved in the agriculture sector so far has been a mix of both encouraging and discouraging trends and that there is need to enhance both the pace and the level of development. To do this, it is necessary to identify the causes, which are affecting the development of Indian farmers particularly rural agricultural farmers. One of the huge problem faced by the agricultural farmers is the unasserted price for their products particularly vegetables which are perishable in nature. Though the government takes steps and policies, the role of intermediaries are not abolished in the rural agricultural marketing.

Paramathi Velur is one of the important area producing banana in high level. They face many problems in marketing their products. They are not able to reap reasonable profit due to the intermediaries. The present study made an attempt to analyse the profit spread in banana marketing in Paramathi Velur Block.

The non-development of agricultural markets in the State had exposed the farmers to various exploitative trading forces resulting into a situation where the farmers are unable to get the remunerative prices for their produce. The village level markets are manned by the highest bidding and they do not have the basic facilities for proper marketing. These markets are active only on the appointed days – once or twice in a week and on the appointed days the sellers and the buyers come to the market for their selling and purchase the bunches. If the Government take necessary steps to improve the marketing facilities through establishing co- operative marketing for banana, it will helpful for the banana producers to improve the production of banana in this area.

Keywords: Banana, Profit margin, Marketing, Producer, Wholesaler, Weekly market.

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A STUDY ON MARKETING OF BANANA IN PARAMATHI VELUR BLOCK OF NAMAKKAL DISTRICT

Dr. S. SENTHILRAJA Assistant Professor, PG and Research Department of Economics, Kandaswami kandar’s College, Velur-Namakkal. Mobile No : 9865469401 Introduction

One of the huge problem faced by the agricultural farmers is the unasserted price for their products particularly vegetables which are perishable in nature. Though the government takes steps and policies, the role of intermediaries are not abolished in the rural agricultural marketing.

India continues to rank as the second largest producer of fruits in the world. Banana is one of the important fruits in India and occupies about 4.24 lakh hectares (10.49 per cent in world share) with a production of about 121.05 lakh tonnes (17.44 per cent in world share) in 2005-06. The main varieties of banana are Dwarf Cavendish, Rasthali, Robusta, Povan, Nendran, Karpuravalli and Sevvazhai. Export of Banana is less than 10 % of production The major banana producing states are Maharashtra, Kerala, Tamil Nadu, Gujarat, Assam, Andhra Pradesh and Karnataka

Marketing of plantain in Paramathi Velur starts on the evening of Friday and is completed on the afternoon of Saturday every week. On an average 10,000 plantain Thars1 are usually traded every week. It is worth Rs.1.5 lakhs. In this, freightage, processing cost, transport cost, etc., are included. The plantain marketing happens to be the major activity of

1 Thars – refer to a cluster of bunches plantain.

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the local market which serves an area with a radius of 20 kilometers. There is no other big plantain market anywhere near. There are many plantain gardens on either bank of the river Cauvery.

Plantain Marketing Structure

The plantain garden of Paramathi Velur is a mono-commodity farm. There are three major varieties of plantain. They are (1) Poovan (2) Rasthali (3) Monthan. There is quality variation but it is not much noticed. There are indeed seasonal fluctuations in production.

The market organization for plantain at Paramathi Velur consists of components of farmer-producer-seller, wholesalers (Intermediate buyers) retailers and consumers. There are many producer-sellers. There are wholesalers too and their number is 20.

It is a fact that there is no well developed marketing organization for this important crop here. It is also true that there is considerable difference between the producer’s sale price and the consumer’s purchase price. However there is a possibility for minimizing the spread so that both the producer and consumer could benefit. It has been observed here that the producer remains positive in the process of price fixation. The following research questions are postulated:

 There is much profit to the seller, whether wholesaler or retailer.

 Consumer’s pay a high price for plantain fruits but is not fully enjoyed by the producing farmer.

Objectives

The main objectives of this study are as follows:

 To estimate the producer’s net price, wholesaler’s net price and retailer’s net price individually and examine their net price ratios comparatively.

 To examine the abnormal profits of the wholesalers and retailers.

 To study the various marketing problems connected with the marketing of plantain.

Methodology

Paramathi Velur is the universe of the present study. Paramathi Velur has a weekly market. Plantain thars come from the neighboring villages of Paramathi Velur block. Villages which lie on the other side of the river Cauvery are in Karur district but they also supply plantain thars to the Paramathi Velur market. A few villages on the eastern tail and of Erode

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district lying contiguous to the borders of Salem and Karur district also supply plantain thars to this market. The plantain marketing commences on Friday night and ends on Saturday afternoon.

Producer-Seller

The farmers are categorized as marginal farmers, small farmers, medium farmers and large farmers. The period of the present study is during the financial year of 2018-19. There were 52 market days during that year. All the market days were considered for the present research work. During the study year, totally 22 villages supplied plantain thars to the market. Of this 11 villages are in Namakkal district, 9 villages in Karur district and 2 villages in Erode district. Data were collected from the producer-sellers. Random sampling techniques were employed in this study. 55 farmers were randomly selected for the study. There are about 25 processing laborers and they all happen to be females. Of that 5 were selected for study. Jobbers or bargainers in the Paramathi Velur plantain market were about 20 in number and of this 10 were taken for study. Intermediate buyers numbered 20. Of this 5 were taken for this study. The following Table shows the samples selected for the study.

TABLE 1

RANDOM SAMPLES OF PRODUCER-SELLERS

1 and less 2 and less 3 and less Above 3 Total than 1 acre than 2 acres than 3 acres acres Producer- 22 11 11 11 55 sellers Percentage 40% 20% 20% 20% 100%

TABLE 2 DISTRICT WISE PRODUCER-SELLER 1 and less 2 and less 3 and less Above 3 District than 1 acre than 2 acres than 3 acres acres Namakkal 11 05 05 05

Karur 09 04 04 04

Erode 02 02 02 02

Total 22 11 11 44

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Results and Discussion

The tabular and percentile analyse of the present study exhibits the comparison between the producers annual average sale price, wholesalers annual sale price, wholesalers annual net price, profit margin of the wholesaler, wholesalers annual average sale price retailers annual net price and the profit margin of the retailers. The initial cost of a plantain thar was Rs.129.00. The annual average sale price at the retailers was Rs.225.00. Wholesaler and retailer incur the marketing costs. After the deduction of these marketing costs, the wholesaler received Rs.46.20 as the profit margin per thar at the rates calculated on the average per year. The retailers profit margin, after deductions of marketing costs was Rs.27.00. The total profit margin was therefore Rs.73.20 whose initial cost was Rs.129.00. One can see the wide profit margin that were going to the wholesalers and the retailers. The producers annual average sale price per retailers. The producers annual average sale price per thar was Rs.129.00. The consumers annual average price was Rs.225.00 per thar. Out of Rs.96.00 as the difference, Rs.73.20 constituted the profit and Rs.22.80 formed as transport and other marketing costs of both the wholesalers and the retailers. The profit spread or difference per that is too wide. Hence there is wide profit spread.

The consumers paid Rs.300.00 as the highest price per than on certain months and on the average they paid Rs.225.00 the average purchase price per thar. The plantain thar entered with its average tag price as Rs.125.00. But the consumer received it on the average for Rs.225.00. The marketing costs except the component of profit for both the Organisational machineries viz. wholesalers and retailers were Rs.22.80. Now therefore the cost of plantain thar was Rs.151.80 except the profit element. But the consumer had paid on an average of Rs.225.00 and therefore the wholesalers and the retailers earned abnormal profit. Hence consumer paid high price for plantain fruit.

Estimation of Retailers Profit Margin

The Table 3 shows the retailers profit margin during the study period. The highest profit margin was Rs.82.50. The retailer had incurred loss in two months, January 2012 and March 2012.

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TABLE 3 RETAILERS PROFIT MARGIN Retailers’ Retailers’ month Profit margin of Month month wise wise net cost price the retailer sale price

April 2010 180 157.50 22.50

May 240 96.75 46.50

June 240 193.50 34.50

July 240 193.50 34.50

August 240 193.50 34.50

September 180 187.50 52.50

October 300 217.50 82.50

November 300 217.50 82.50

December 180 145.50 34.50

January 2011 210 181.50 28.50

February 240 205.50 34.50

March 185 181.50 3.50 Source: Primary data

Results and Discussion

 The initial cost of plantain thar at the market was Rs.125.00. The wholesaler received a profit margin of Rs.46.20. The retailer got a profit of Rs.27.00 per thar. Hence Rs.73.20 constituted the profit margin of both wholesalers and retailers excluding the marketing cost of Rs.22.80. There is a wide profit spread.

 The average price the consumers paid during the period of study was Rs.225.00. The initial cost of plantain thar at the market was Rs.129.00. The consumer paid an extra amount of Rs.73.20. It is identified that the consumer paid very high price for plantain thars.

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 The present study found that the producers net price as Rs.129.00. The wholesalers net price was calculated as Rs.139.80. The retailers net price was estimated at Rs.192.00.

 The role of commission agent was different at Velur Plantain market. They were merely labourers. They had no capital, wage was paid for their bargaining operations.

 The processing component was very simple. Women folk were employed for that purpose.

 A sizable number of transport vehicles were used for the arrivals of plantain thars and for the transportation of the same from the market. Women and men workers are employed for loading and unloading operations.

 The labours, transport, bargaining and processing cost are all on the average a fixed component in the marketing margin mix.

Conclusion

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Reference: 1. Amarchand, D and Varadarajan, B, “An Introduction ot marketing Vikas Publication, New Delhi,2002. 2. Edward W. Cundiff et-al, Fundamentals of Modern Marketing, Prentice Hall of India, 1973. 3. F.J. Mc. Carthy, Basic Marketing, Richard D. Irwin, 1971, 4. John R. Moorse S.S. Johl, A.M. Khusro-Indian Foodgrains Marketing, 5. Richard, L.Kohls and David Downey – marketing of agricultural products. 6. Manendra Mohan, The Dynamic Concept of marketing Economic and Political weekly (Vol no. 22) Review of Management, May 1970. 7. S.C.Verna, Secretary, Union Ministry of Rural, Reconstruction – Recent trends in Agricultural Marketing Kurukshetra Vol. XXIX, June 16,30, 8. Marketing staff of the Ohio University, “The Statement of Marketing Philosophy”. Journal of Marketing, Jan 199, 9. The Committee on definition, Marketing Definition – A glossary of marketing terms – American Management Association. 2000. 10. Martin L. Bell, marketing Concepts and strategy,

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