International Journal of Agriculture Sciences
ISSN: 0975-3710 & E-ISSN: 0975-9107, Volume 11, Issue 6, 2019, pp.-8140-8142.
Available online at https://www.bioinfopublication.org/jouarchive.php?opt=&jouid=BPJ0000217
Case Study MARKETING PRACTICES OF POTATO: A CASE STUDY OF ARAVALLI DISTRICT OF GUJARAT
SODHI H.* AND PATEL A.
V. M. Patel Institute of Management, Ganpat University, Kherva, Mehsana 384001, Gujarat, India
*Corresponding Author: Email - [email protected]
Received: March 14, 2019; Revised: March 26, 2019; Accepted: March 27, 2019; Published: March 30, 2019
Abstract: The present study was focused on the marketing of fresh and stored potato in Aravalli district of Gujarat, India. From the district, two talukas viz., Bayad and Modasa were purposely selected having the highest area and production. From each taluka, three villages were selected. In all 100 farmers, 20 wholesalers, 25 semi wholesalers and 40 retailers were surveyed for the study. Major marketing channels identified in the study for fresh potato was Farmer-Wholesaler-Semi Wholesaler-Retailer-Consumer and for the stored potato, it was Farmer-Cold storage-Wholesaler- Retailer-Consumer. It was observed that the price spread of stored potato marketing channel was high due to higher marketing cost of storage. The farmers were getting good prices of their produce during the peak season and lower prices in the off season resulting the bumper availability of potato from the cold stores.
Keywords: Marketing channels, Marketing cost, Marketing margin, Potato, and Price spread
Citation: Sodhi H. and Patel A. (2019) Marketing Practices of Potato: A Case Study of Aravalli District of Gujarat. International Journal of Agriculture Sciences, ISSN: 0975- 3710 & E-ISSN: 0975-9107, Volume 11, Issue 6, pp.- 8140-8142
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Copyright: Copyright©2019 Sodhi H. and Patel A. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original author and source are credited.
Academic Editor / Reviewer: Dr S. Acharya, Dr S.N. Jaimini Introduction
Marketing Cost is the cost incurred by the market players to reach the produce to the final consumer. It was calculated by adding marketing cost incurred by every market player right from producer to the retailer involved in the marketing channel [3]. Marketing margin is a difference between the total payments (cost + purchase price) and receipts (sale price) of the middlemen. It was calculated by deducting total payments (cost + purchase) incurred by middlemen from the sale price offered by the middlemen [4]. Price spread is the difference between the price paid by the consumer and that received by the producer of a particular commodity.
Producer’s share in consumer’s price was calculated by net price received by the
producer/ farmer by retail price of potato and expressed in percentage. Marketing efficiency is the ratio of the total value of goods marketed to the total marketing cost. The higher the ratio, higher is the efficiency. The marketing efficiency was
worked out using Acharya’s modified marketing efficiency [5] i.e., Modified
marketing efficiency= Net price received by the farmer /(Marketing cost + Marketing margin).
Improvement Agriculture plays a crucial role for inclusive growth of Indian economy. As India has incredible potential for increasing production of fruits and vegetables, various efforts have been made to boost their production. Potato is one of the most important tuber crops in India. Potato is an important part of Indian diet. Potato is one of the most popular vegetable grown all over the world. Keeping in view, the potential of potato in the food security of developing nations,
FAO has declared it as the “Food for Future”[1].Gujarat ranks 6th in area, while
4th in total production and 1st in productivity of potato in the country. It is cultivated in eleven districts out of 33 districts of the state which include Banaskantha, Aravalli, Sabarkatha, Gandhinagar, Mehsana, Kutch, Kheda, Anand, Patan, Varodara, and Mahisagar [2]. The objectives of the present study were to study the marketing practices and marketing channels of potato and to estimate the marketing cost and marketing margins and price spread for fresh as well as stored potato marketing channels in Aravalli district of Gujarat State.
- Material and Methods
- Results and Discussion
Two-stage stratified random sampling technique was used for selection of sample. The Aravalli district of Gujarat was purposely selected for the study. Two talukas from Aravalli district having maximum area under potato cultivation were selected purposively for the study. Thus, Bayad and Modasatalukas were selected for the present investigation. A cluster of three villages from these two talukas, where potato is important crop were selected. The sample consisted of 100 farmers, 30 wholesalers, 35 semi wholesalers and 40 retailers. Simple and weighted averages and percentage methods were used for tabular analysis. Further analysis for specified objective was done by using various standard statistical tools. Both primary and secondary data were collected. Primary data were collected using pre-tested well-structured questionnaire through personal interview with the respondents. The secondary data regarding village level information were collected from Taluka Vistran Adhikari located in each taluka panchayat. Secondary data were also collected from research journals, magazines, books, websites, research reports, newspapers etc.
Marketing of potato
The marketing channels are linked with the chains of intermediaries involved at various levels of marketing for smooth distribution of the commodity. The major marketing channels identified in the present study for the fresh potato was: Farmer-Wholesaler-Semi wholesaler-Retailer-Consumer, and for the stored major potato marketing channel was: Farmer-Cold storage-Wholesaler-Semi wholesalerRetailer-Consumer.
Marketing costs Cost of marketing affects the producer’s net share in the
consumer rupee. An attempt has been made to workout item wise cost of marketing by all the functionaries in potato marketing and is presented [Table-1]. The marketing cost in the present study involved 15 items. Amongst these picking, grading, bag filling and bag stitching are borne exclusively by the farmer. The farmer packs the produce in jute bags and markets in the Mandi. The expenses towards these items are mainly incurred by the farmer and to the lower extent by the retailer.
International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 11, Issue 6, 2019
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Marketing Practices of Potato: A Case Study of Aravalli District of Gujarat
Table-1 Total marketing cost for fresh and stored potato marketing in Aravalli district
- Particulars
- Fresh potato marketing
Rs/qtl
6.46
Stored potato marketing Rs/qtl.
6.53 5.23 4.6
- %
- %
Picking Grading Bag Filling
2.33 2.25 1.66 1.22
1.29 1.03 0.91 0.66 7.00 2.61 1.90
6.25 4.60 3.39 28.76 13.16 9.55 51.1 12.66 8.71 58.8 37.8 36.41 -
Bag Stitching Packing Material Loading
3.35
10.36 4.74 3.44 18.40 4.56 3.14 21.18 13.61 13.11 -
35.38 13.17
- 9.6
- Unloading
Transportation Market fee Weighing Charges Weight Loss
54.42 10.39 9.08
10.77 2.05 1.80
32.16 28.27 36.51 215.23 41.31 505.23
6.37 5.60 7.23 42.60 8.18
Spoilage Miscellaneous Cold storage charges Post cold storage expenses Sub total
- -
- -
- 277.64
- 100.00
- 100.00
Table-2 Average price spread in marketing of fresh and stored potato in Aravalli District
- Particulars
- Fresh potato marketing
- Stored potato marketing
Rs/qtl
882.23 96.92
%
54.87 6.03
Rs/qtl.
447.47 87.91
%
33.24 6.53
Net price received by farmer Net margin of wholesaler Net margin of semi wholesaler Net margin of retailer Total marketing margin (A) Marketing cost incurred by farmer Marketing cost incurred by wholesaler
142.69 208.30 447.91 97.79
- 8.87
- 119.02
185.65 391.58 350.22 46.90
8.84
12.96 27.86 6.08
13.79 29.08 26.09
- 3.48
- 53.82
- 3.35
- Marketing cost incurred by semi wholesaler 60.30
- 3.75
- 50.88
- 3.78
Marketing cost incurred by retailer Total Marketing Cost (B) Price spread (A+B)
- 65.73
- 4.09
- 57.23
- 4.25
37.6 66.76 100.00
277.64 725.55 1607.78
17.27 45.13 100.00
505.23 898.81
- 1346.38
- Price paid by Consumer
In Aravalli district, the farmer and retailers are not incurring any expense towards market fee, as it is borne by the wholesalers and semi-wholesalers. The marketing cost in the present study involved 15 items. Amongst these picking, grading, bag filling and bag stitching are borne exclusively by the farmer. The farmer packs the produce in jute bags and markets in the Mandi. The expenses towards these items are mainly incurred by the farmer and to the lower extent by the retailer. In Aravalli district, the farmer and retailers are not incurring any expense towards market fee, as it is borne by the wholesalers and semi wholesalers. The loading expenses are borne by all the functionaries, whereas unloading expenses generally are not borne by the farmers and retailers. Amongst these expenses, the cold storage charges and post cold storage expenses are important items in the stored potato marketing. The post storage expenses include unpacking, cleaning, grading, weight loss and spoilage during storage, bag refilling and stitching at cold store units. The results revealed that the overall marketing cost for fresh potato was Rs. 277.64 per qtl. The major marketing cost items were weight loss (21.18%) followed by transportation (18.40%), spoilage (13.61%), miscellaneous expenses (13.11%) and packing material (10.36%). The miscellaneous expenses include the expenses towards tea, snacks, personal travelling, communication, electricity and shop rent. For cold stored potato, the overall marketing cost was Rs. 505.23 per qtl. The major marketing cost items included cold store charges (42.60%), transportation (10.77%), post cold storage expenses (8.18%), miscellaneous expenses (7.23%) and packing material (7.00%). The packing material expenses in terms of Rs/qtl were high in stored potato (35.38 Rs/qtl.) as compared to fresh potato marketing (28.76 Rs/qtl), since better quality jute bags was used for storing the potato during cold storage.
The expenses borne by the farmer for fresh potato marketing were Rs. 97.79 per
qtl., which were 6.08 percent of the consumers’ purchase price. The expenses
borne by the farmer for stored potato marketing were Rs.350.22 per qtl., being
26.09 percent of the consumers’ purchase price. The expenses born by the
wholesaler, semi wholesaler and retailer for fresh potato marketing were Rs. 53.82, Rs. 60.30, and Rs. 65.73 per qtl., respectively, which were 3.35 percent, 3.75 percent and 4.09 percent of the consumer price (Rs. 1607.78 per qtl.). The expenses born by the wholesaler, semi wholesaler and retailer for stored potato marketing were Rs. 46.90, Rs. 50.88, and Rs. 57.23/ qtl., respectively, which were 3.48 percent, 3.78 percent and 4.25 percent of the consumer price (Rs. 1346.38 per qtl.).
The results revealed that the producer’s share in fresh potato was 54.87 percent
and in stored potato it was 33.24 percent of the consumer purchase price. The net price received by the farmer for stored potato was Rs/qtl 447.47 as compared to Rs/qtl. 882.23for fresh potato which was 49.23% less than the price received by the farmer for fresh potato. The margin of the wholesaler for fresh potato marketing was 6.03 percent, whereas this figure was 8.87 percent and 12.96 percent in case of semi wholesaler and retailers, respectively. The margin of the wholesaler for stored potato marketing was 6.53 percent, whereas this figure was 8.84 percent and 13.79 percent in case of semi wholesaler and retailers respectively. The total price spread for fresh potato marketing was 45.13 percent
of consumer’s price, when produce was sold through wholesaler, semi wholesalers and retailers. The consumer’s paid higher prices for potatoes but
45.13 percent advantage of higher prices (Rs. 1607.78 per qtl.) had gone in to the pocket of intermediaries and remaining of the 54.87 percent advantage went to the farmers. For stored potato marketing, the total price spread was found to be
66.76 percent of consumer’s price, when produce was sold through wholesaler,
semi wholesalers and retailers. The higher price was paid by the consumer for potato though66.76 percent advantage of these higher prices (Rs. 1346.38 per qtl.) had gone to the intermediaries and rest of the 33.24 percent advantage was accrued to the farmers. The price paid by consumer was lower for stored potato (1346.38 Rs/qtl.) as compared fresh potato (1607.78 Rs/qtl.).
Marketing margins and price spread
Price spread is a good indicator for determining the producer’s share in consumer
rupee. Price spread consists of marketing cost and margins of the intermediaries, which ultimately determines the overall efficiency of marketing system. The average per qtl price spread of potato in fresh and stored potato marketing is presented in [Table-2].
International Journal of Agriculture Sciences
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Sodhi H. and Patel A.
The price paid by the consumer was 16.26 percent lower for stored potato as
Cultivar / Variety name: Potato- S. tuberosum
compared to fresh potato. Comparing the total price spread for fresh and stored potato marketing, it was observed that the price spread of stored potato marketing channel was higher than the fresh potato marketing channel, because of the
higher marketing cost during potato storage. As far as producer’s share in
consumer rupee is concerned, in the present study, farmers are getting good prices of their produce during the peak season, while lower prices in the off season because of the bumper availability of potato from the cold storages. To
tackle this situation Government of Gujarat established Farmers’ markets i.e., Khedut Grahak Bazar’ during the year 2016 in Gujarat with a view to improve the efficiency of marketing fruits and vegetables and to increase the farmers’ share in consumers’ expenditure. Farmers’ markets are the new institutional arrangements
that eliminate the middlemen in marketing by bringing producers and consumers in direct contact with each other. The elimination of intermediaries helps farmers in getting good price and consumers in getting fresh vegetables and fruits at a reasonable price.
Conflict of Interest: None declared
Ethical approval: This article does not contain any studies with human participants or animals performed by any of the authors. Ethical Committee Approval Number: Nil
References
[1] [2]
Anonymous (2012) Basement Data for Potato and Onion, 13. Anonymous (2017) Ministry of Agriculture and Farmer Welfare, Government of India, 514.
[3] [4] [5]
Singh R.P. and Toppo A. (2010) Indian Journal of Agriculture Marketing, 24(2), 1-16.
Balaji M.N., Chahal S.S. and Kataria P. (2010) Indian Journal of
Agricultural Marketing, 24 (2), 164-177. Acharya S.S. and Agrawal N.L. (2005) Agricultural Marketing in India, Oxford and IBM Publishing Co. Pvt Ltd., New Delhi, 506.
Conclusion
Aravalli is the important potato growing district of Gujarat state. Present study was conducted involving 120 farmers, 25 wholesalers, 20 semi wholesalers, 40 retailers. The marketing channels identified for marketing of potato were: FarmerWholesaler-Semi wholesaler-Retailer for fresh potato. Farmer-Cold StorageWholesaler-Semi wholesaler-Retailers channel was identified for stored potato. In the marketing of fresh potato, the major marketing cost was weight loss, transportation, spoilage, miscellaneous expenses and packing material, while for stored potato, these costs included cold storage charges followed by transportation, post cold stored expenses and packing material. Being the perishable nature of fresh potato, the spoilage and weight loss are the important factors. To avoid these losses, systematic and scientific studies are required. The transportations cost is ought to be heavy because of the bulky nature of the produce. The net price received by the farmer was for stored potato was 447.47 Rs/qtl as compared to 882.23 Rs/qtl. for fresh potato which was 49.23% less than the price received by the farmer for fresh potato. The price paid by the consumer was 16.26 percent lower for stored potato as compared to fresh potato. The marketing margin for fresh as well as for stored potato was higher for retailers followed by semi wholesaler and wholesaler. Relatively lower margins for wholesalers and semi wholesalers were on account of high volume of business handled by these functionaries as compared to the retailers who handle low volume of business. The total price spread of stored potato marketing channel was higher than the channel of fresh potato marketing
.
Application of Research: Study of marketing practices of potato.
Research Category: Agricultural Marketing, Agricultural Economics
Abbreviations:
Rs.: Rupee, FAO: Food and Agriculture Organisation, Qtl: Quintal Acknowledgement / Funding: Authors are thankful to V. M. Patel Institute of Management, Ganpat University, Kherva, Mehsana 384001, Gujarat, India
*Research Guide or Chairperson of research: Dr Amit Patel
University: Ganpat University, Kherva, Mehsana 384001, Gujarat, India Research project name or number: PhD Thesis
Author Contribution: All author equally contributed
Author Statement: All authors read, reviewed, agree and approved the final manuscript. All authors agreed that- Written informed consent was obtained from all participants prior to publish / enrolment
Study area / Sample Collection: Aravalli district, Gujarat
International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 11, Issue 6, 2019
- ||BioinfoPublications||
- 8142