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A Case Study of Aravalli District of Gujarat

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A Case Study of Aravalli District of Gujarat 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. 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 Improvement Agriculture plays a crucial role for inclusive growth of Indian the final consumer. It was calculated by adding marketing cost incurred by every economy. As India has incredible potential for increasing production of fruits and market player right from producer to the retailer involved in the marketing channel vegetables, various efforts have been made to boost their production. Potato is [3]. Marketing margin is a difference between the total payments (cost + purchase one of the most important tuber crops in India. Potato is an important part of price) and receipts (sale price) of the middlemen. It was calculated by deducting Indian diet. Potato is one of the most popular vegetable grown all over the world. total payments (cost + purchase) incurred by middlemen from the sale price Keeping in view, the potential of potato in the food security of developing nations, offered by the middlemen [4]. Price spread is the difference between the price FAO has declared it as the “Food for Future”[1].Gujarat ranks 6th in area, while paid by the consumer and that received by the producer of a particular commodity. 4th in total production and 1st in productivity of potato in the country. It is Producer’s share in consumer’s price was calculated by net price received by the cultivated in eleven districts out of 33 districts of the state which include producer/ farmer by retail price of potato and expressed in percentage. Marketing Banaskantha, Aravalli, Sabarkatha, Gandhinagar, Mehsana, Kutch, Kheda, efficiency is the ratio of the total value of goods marketed to the total marketing Anand, Patan, Varodara, and Mahisagar [2]. The objectives of the present study cost. The higher the ratio, higher is the efficiency. The marketing efficiency was were to study the marketing practices and marketing channels of potato and to worked out using Acharya’s modified marketing efficiency [5] i.e., Modified estimate the marketing cost and marketing margins and price spread for fresh as marketing efficiency= Net price received by the farmer /(Marketing cost + well as stored potato marketing channels in Aravalli district of Gujarat State. Marketing margin). Material and Methods Results and Discussion Two-stage stratified random sampling technique was used for selection of sample. Marketing of potato The Aravalli district of Gujarat was purposely selected for the study. Two talukas The marketing channels are linked with the chains of intermediaries involved at from Aravalli district having maximum area under potato cultivation were selected various levels of marketing for smooth distribution of the commodity. The major purposively for the study. Thus, Bayad and Modasatalukas were selected for the marketing channels identified in the present study for the fresh potato was: present investigation. A cluster of three villages from these two talukas, where Farmer-Wholesaler-Semi wholesaler-Retailer-Consumer, and for the stored major potato is important crop were selected. The sample consisted of 100 farmers, 30 potato marketing channel was: Farmer-Cold storage-Wholesaler-Semi wholesaler- wholesalers, 35 semi wholesalers and 40 retailers. Simple and weighted averages Retailer-Consumer. and percentage methods were used for tabular analysis. Further analysis for Marketing costs Cost of marketing affects the producer’s net share in the specified objective was done by using various standard statistical tools. Both consumer rupee. An attempt has been made to workout item wise cost of primary and secondary data were collected. Primary data were collected using marketing by all the functionaries in potato marketing and is presented [Table-1]. pre-tested well-structured questionnaire through personal interview with the The marketing cost in the present study involved 15 items. Amongst these picking, respondents. The secondary data regarding village level information were grading, bag filling and bag stitching are borne exclusively by the farmer. The collected from Taluka Vistran Adhikari located in each taluka panchayat. farmer packs the produce in jute bags and markets in the Mandi. The expenses Secondary data were also collected from research journals, magazines, books, towards these items are mainly incurred by the farmer and to the lower extent by websites, research reports, newspapers etc. the retailer. International Journal of Agriculture Sciences ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 11, Issue 6, 2019 || Bioinfo Publications || 8140 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 Stored potato marketing Rs/qtl % Rs/qtl. % Picking 6.46 2.33 6.53 1.29 Grading 6.25 2.25 5.23 1.03 Bag Filling 4.60 1.66 4.6 0.91 Bag Stitching 3.39 1.22 3.35 0.66 Packing Material 28.76 10.36 35.38 7.00 Loading 13.16 4.74 13.17 2.61 Unloading 9.55 3.44 9.6 1.90 Transportation 51.1 18.40 54.42 10.77 Market fee 12.66 4.56 10.39 2.05 Weighing Charges 8.71 3.14 9.08 1.80 Weight Loss 58.8 21.18 32.16 6.37 Spoilage 37.8 13.61 28.27 5.60 Miscellaneous 36.41 13.11 36.51 7.23 Cold storage charges - - 215.23 42.60 Post cold storage expenses - - 41.31 8.18 Sub total 277.64 100.00 505.23 100.00 Table-2 Average price spread in marketing of fresh and stored potato in Aravalli District Particulars Fresh potato marketing Stored potato marketing Rs/qtl % Rs/qtl. % Net price received by farmer 882.23 54.87 447.47 33.24 Net margin of wholesaler 96.92 6.03 87.91 6.53 Net margin of semi wholesaler 142.69 8.87 119.02 8.84 Net margin of retailer 208.30 12.96 185.65 13.79 Total marketing margin (A) 447.91 27.86 391.58 29.08 Marketing cost incurred by farmer 97.79 6.08 350.22 26.09 Marketing cost incurred by wholesaler 53.82 3.35 46.90 3.48 Marketing cost incurred by semi wholesaler 60.30 3.75 50.88 3.78 Marketing cost incurred by retailer 65.73 4.09 57.23 4.25 Total Marketing Cost (B) 277.64 17.27 505.23 37.6 Price spread (A+B) 725.55 45.13 898.81 66.76 Price paid by Consumer 1607.78 100.00 1346.38 100.00 In Aravalli district, the farmer and retailers are not incurring any expense towards The expenses borne by the farmer for fresh potato marketing were Rs. 97.79 per market fee, as it is borne by the wholesalers and semi-wholesalers. The marketing qtl., which were 6.08 percent of the consumers’ purchase price. The expenses cost in the present study involved 15 items. Amongst these picking, grading, bag borne by the farmer for stored potato marketing were Rs.350.22 per qtl., being filling and bag stitching are borne exclusively by the farmer. The farmer packs the 26.09 percent of the consumers’ purchase price. The expenses born by the produce in jute bags and markets in the Mandi. The expenses towards these wholesaler, semi wholesaler and retailer for fresh potato marketing were Rs. items are mainly incurred by the farmer and to the lower extent by the retailer. In 53.82, Rs. 60.30, and Rs. 65.73 per qtl., respectively, which were 3.35 percent, Aravalli district, the farmer and retailers are not incurring any expense towards 3.75 percent and 4.09 percent of the consumer price (Rs. 1607.78 per qtl.). The market fee, as it is borne by the wholesalers and semi wholesalers.
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