Surplus and price spread in marketing channels of Pukraj potato in Latur district of Maharashtra

Transcription

1 nternationl Research Journal of Agricultural Economics and Statistics Volume 3 ssue 2 September, Research Paper Surplus and price spread in marketing channels of Pukraj potato in Latur district of Maharashtra ATUL P. KULKARN, B.R. PAWAR AND BASAVARAJ R. JAMAKHAND See end of the paper for authors affiliations Correspondence to : BASAVARAJ R. JAMAKHAND Department of Agricultural Economics, University of Agricultural Sciences, G.K.V.K., BENGALURU (KARNATAKA) NDA Paper History : Received : ; Revised : ; Accepted: ABSTRACT : The present study was undertaken to know the marketing channels and price spread in Pukraj potato marketing in Latur district of Maharashtra. For the study, Chakur and Latur tehsils of Latur district were surveyed in the year The result revealed that quintals of Pukraj potato were marketed through channel-, in which the highest quantity involved was higher quantity of grade- (3.89 per cent) followed by grade- (2.45 per cent) and grade- (1.97 per cent). t was understood grade- as a higher quality followed by grade- and grade-. Thus, net price received by producer was higher as Rs for grade- followed by Rs in grade- and Rs in grade-. KEY WORDS : Pukraj potato, Cost, Margin, Price spread, Market HOW TO CTE THS PAPER : Kulkarni, Atul P., Pawar, B.R. and Jamakhandi, Basavaraj R. (2012). Surplus and price spread in marketing channels of Pukraj potato in Latur district of Maharashtra, nternat. Res. J. agric. Eco. & Stat., 3 (2) : NTRODUCTON Potato as a vegetable is of great importance in our daily diet. Potato is one of the richest sources of calories (Proteincalories ratio 17 g protein: 1000 k cal) needed to maintain day to day output of human energy. Potato is rich in carbohydrates, quality of protein, dietary fibre, vitamin and minerals. Potato contains vitamin like Niacin, Thiamin and vit.-b group. Beside this, it also contains calcium, phosphorus and iron. Quality of potato proteins is comparable to eggs and milk therefore superior to those present in cereals, pulses or vegetables. Potato is in maximum uses for making potato flour, potato chips, French fries, frozen potato, potato starch, tapioca of potato. nsufficient availability of quality seed all over the country and the high cost of seed in some areas are the problems of potato cultivation. At present, as already stated, the CPR has monopoly for the production of breeder s seed. t is then supplied to state Agricultural / Horticultural Departments and the national and state seed corporations for further multiplication into certified seed and eventual distribution to the farmers. The CPR presently meets about 25 per cent of the national requirements of breeder s seed. n view of the limited resources of the CPR in increasing its breeder s seed production capacity, two steps have been taken recently like involvement of six state agriculture universities in breeder s seed production and use of modern techniques of micropropagation with tuberlet production for improving breeder seed production. The effects of these measures will be evident only after the next years and the country will then become nearly self-sufficient in its seed requirements. MATERALS AND METHODS Latur district was purposely selected for present study because of more availability of area under potato production in the district. On the basis of the highest area potato crop, Chakur and Latur Tehsils were selected for the present study. From each selected Tehsil, four, villages were selected on the basis of highest area under variety Pukraj-166 potato cultivation. The selected villages in Chakur Tehsil were namely, Devangra, Nalegaon, Murambi and Sugaon whereas in Latur tehsil, Bhatangali, Kasarkheda, Mamdapur and Ramjanpur.

2 ATUL P. KULKARN, B.R. PAWAR AND BASAVARAJ R. JAMAKHAND Stratified random sampling technique was used. From each village, separate list of variety of Pukaraj-166 was obtained. From the list of Pukaraj-166, six potato growers were randomly selected from each village. Thus, from 8 villages, 48 Pukraj potato growers were selected for the present study. The cross sectional data were collected from 48 pukraj potato growers with the help of pretested schedule by personal interview during the year Market cost and market margin were worked out from actual data collected from market intermediaries, marketing cost incurred by producer was estimated from the data collected from selected cultivators for the present. Marketing channel is the chain of intermediaries. Price spread of the producer showed the difference between net price received by the producer in the assembling market and price paid by ultimate consumer to produce in the retail market. t includes all the market charges incurred by the producer, wholesaler and retailer as well as profit margin at wholesaler and retailer. Producers share in consumer s rupee is very helpful in deciding the appropriate strategies for reducing the marketing cost in the present study. t is price received by the farmer expressed as a percentage of the retail price, i.e. price paid by the consumer. f price is the retail price the producer share in consumer s rupee (Ps) is expressed as follows. Net price received by the producer Ps = Price paid by the consumer x 100 RESULTS AND DATA ANALYSS The findings obtained from the present study are presented below: Marketing cost, margin and price spread in potato marketing: Potato is tuber crop. Harvesting of potato for marketing is being spread over one month. Potato can be sold either in small quantity for selling in near market or larger quantity sold at distant markets. n distant market, many intermidiatories are performing different marketing functions. Production, retention and market surplus of graded potato sold through different channels were calculated with respect to Pukraj potato variety and are presented in Table 1. Production of Pukraj potato was quintals on 1.43 hectares. t was observed that retention for home consumption was 1.29 quintals of Pukraj potato. The result revealed that quintals of Pukraj potato were marketed through channel-, in which the highest quantity which involved higher quantity of grade- (3.89 per cent) followed by grade- (2.45 per cent) and grade- (1.97 per cent). t was understood that grade- was a higher quality followed by grade- and grade-. t implied that the high quality of potato was in low quantity which was sold in near market i.e. channel-. n channel-v at a long distance market quantity of potato was sold as q followed by channel- and channel- in which quantity of potato was sold as and quintals, respectively. n regards to different grades, in grade the highest quantity was sold in channel-v followed by channel-, channel- and channel-. Proportionate potato sale of grade- and increased with increase in distance of potato marketing from channel- to V. On the contrary, potato sale with respect to grade-, the proportionate sale decreased with an increase in distance of the market as from channel- to channel-v. Cost incurred by Pukraj potato farm producer: tem wise per quintal costs of marketing of Pukraj potato incurred by producer in different channels were calculated and are presented in Table 2. Results revealed that in channel-, cost incurred by producer with respect to grade- was higher as Rs followed by Rs in grade- and Rs in grade-. Proportionate expenditure on commission charges was highest in all grades that were per cent in grade- followed by per cent in grade- and per cent in grade-. Similarly, proportionate expenditure on transportation charge was also highest in all grades that were per cent in grade- followed by per cent in grade- and per cent in grade-. Per quintal costs of incurred by producer in channel-, Table 1 : Production, retention and marketed surplus of Pukraj graded potato Sr. Pukraj potato farm (1.43 ha) Particulars No. Total Potato production (100.00) (21.98) (67.19) (10.83) 2. Retention for home consumption 1.29 (0.44) 0.60 (0.21) 0.29 (0.10) 0.40 (0.14) 3. Marketed surplus in channel- (Producer-retailer-consumer) (8.31) 7.11 (2.45) 5.73 (1.97) (3.89) 4. Marketed surplus in channel- (Producer-primary wholesalerretailer-consumer) 5. Marketed surplus in channel- (Producer-secondary wholesalerretailer-consumer) 6. Marketed surplus in channel-v (Producer-trader-secondary wholesaler-retailer-consumer) nternat. Res. J. agric. Eco.& Stat. 3(2) Sept., 2012: (25.68) (5.91) (16.38) 9.84 (3.39) (26.10) (6.63) (17.31) 6.26 (2.15) (39.47) (6.77) (31.43) 3.68 (1.27)

3 SURPLUS & PRCE SPREAD N MARKETNG CHANNELS OF PUKRAJ POTATO N LATUR with respect to grade- was higher as Rs followed by Rs in grade- and Rs in grade-. Proportionate expenditure on commission charge was higher in grade- as per cent followed by Per cent and per cent in grade- and, respectively. Transportation charge was higher as per cent in grade- followed by per cent in grade- and per cent in grade- and so on. n regard to channel-, cost incurred by producer was higher in grade- as Rs followed by Rs and Rs for grade- and, respectively. Proportionate expenditure on transportation charge was more as compared to other items that was higher in grade- as per cent, followed by per cent in grade- and per cent in grade-. Commission charge was higher as per cent in grade- followed by and per cent in grade- and grade-, respectively. n regard to channel-v, cost incurred by producer was higher as Rs in grade- followed by Rs in grade- and Rs in grade-. Proportionate expenditure was more in transportation charge that was per cent in grade- followed by per cent in grade- and per cent in grade-. Commission charges were higher in grade- as per cent followed by per cent in grade- and per cent in grade- and so on. Cost incurred by different intermediatories in Pukraj potato: Per quintal cost of marketing of Pukraj potato with respect to various items incurred by different intermediatories were calculated and are presented in Table 3. n regard to primary wholesaler per quintal cost of potato marketing was found to be higher as Rs in grade- followed by Rs in grade- and Rs in grade-. Proportionate expenditure on transportation charge was highest as per cent in grade- then per cent in grade- and per cent in grade-. Labour charges was also higher as 13.22, and in grade-, grade- and grade-, respectively. Market fee was higher in grade- as per cent then per cent in grade- and 6.56 per cent in grade-. n regard to secondary wholesaler in channel-, per quintal cost of marketing was higher in grade- as Rs.30.01, followed by Rs in grade- and Rs in grade-. Proportionate expenditure on labour charge was more per cent in grade- followed by per cent in grade- and per cent in grade-. Losses were higher as per cent in grade- followed by per cent in grade- and per cent in grade-. n regard to trader, per quintal cost of potato marketing was higher as Rs.69.04, Rs and Rs for grade-, grade- and grade-, respectively. Proportionate expenditure on transport charges was higher as per cent in grade- followed by per cent and per cent in grade- and grade-, respectively. Labour charge was also higher as per cent in grade-, followed by per cent in grade- and per cent in grade- and so on. n regard to secondary wholesaler (Channel-V), per quintal cost of marketing was higher as Rs in grade-, followed by Rs in grade- and Rs in grade-. With respect to proportionate expenditure of individual items, expenditure on labour charge was highest as per cent in grade- followed by and per cent in grade- and grade-, respectively. Losses were higher as per cent in grade-, per cent in grade- and per cent in grade- and so on. Cost in incurred by Pukraj potato retailer: Per quintal cost of potato marketing incurred by Pukraj potato retailer were calculated and are presented in Table 4. Table 2 : Cost of marketing of Pukraj potato incurred by producer Channel- Channel- Channel- Channel-V Sr. Particulars No. 1 Labour charge 3.20 (4.31) 2 Transportation chargs 3 Cost of gunny bag 4 Unloading charges 5 Weighing charges 6 Commission charges 7 Cost incurred by producer (23.68) (16.15) (4.04) (2.69) (49.13) (4.09) (22.78) (15.53) (3.89) (2.58) (51.13) (5.74) (30.77) (17.49) (5.25) (3.50) (37.25) Figures in the parentheses indicate percentages to total 3.47 (4.25) (26.88) (14.70) (3.68) (2.45) (48.03) (4.04) (25.92) (14.17) (3.54) (2.37) (49.96) (5.60) (34.70) (15.82) (4.74) (3.16) (35.98) (3.28) (43.15) (10.93) (3.64) (2.74) (36.26) (3.39) (41.65) (10.55) (3.52) (2.64) (38.25) (4.24) (50.42) (12.77) (4.26) (3.19) (25.12) (3.52) (43.90) (10.66) (3.55) (2.66) (35.70) (3.39) (42.55) (10.33) (3.44) (2.58) (57.70) (4.27) (51.00) (12.38) (4.13) (3.10) (25.12) nternat. Res. J. agric. Eco. & Stat. 3(2) Sept., 2012:

4 ATUL P. KULKARN, B.R. PAWAR AND BASAVARAJ R. JAMAKHAND Table 3 : Cost of marketing of Pukraj potato incurred by different intermediatories (Rs./q) Sr. No. Particulars Per cent Per cent Per cent Primary wholesaler (Channel-) 1. Labour charges Transport charges Licence charges Shop tax Market fee Electric charges Storages charges Losses Cost incurred by primary wholesaler Secondary wholesaler (Channel-) 1. Labour charges Licence charges Shop tax Market fee Electric charges Storages charges Losses Cost incurred by secondary wholesaler Trader (Channel-V) 1. Labour charges Transport charges Licence charges Shop tax Market fee Electric charges Losses Cost incurred by trader Secondary wholesaler (Channel-V) 1. Labour charges Licence charges Shop tax Market fee Electric charges Storage charges Losses Cost incurred by secondary wholesaler Result revealed that in channel-, cost incurred by retailer with respect to grade- was higher as Rs.24.69, followed by Rs in grade- and Rs in grade-. n regard to proportionate expenditure, transport charge was highest as per cent in grade-, followed by per cent in grade- and per cent in grade-. Labour charge was also higher as per cent in grade- followed by and per cent in grade- and grade-, respectively and so on. n regard to retailer (channel-), cost of potato marketing was higher in grade- as Rs.27.94, followed by Rs and Rs in grade- and, respectively. Proportionate expenditure was highest on transport charge with respect to grade- as per cent followed by per cent in grade- and per cent in grade-. Market fee was also highest as per cent in grade- followed by per cent in grade- and per cent in grade- and so on. Per quintal costs of potato marketing incurred by retailer (channel-) was highest as Rs in grade- followed by 231 nternat. Res. J. agric. Eco.& Stat. 3(2) Sept., 2012:

5 SURPLUS & PRCE SPREAD N MARKETNG CHANNELS OF PUKRAJ POTATO N LATUR Rs in grade- and Rs in grade-. n regard to proportionate expenditure on transport charge with respect to grade- was highest as per cent followed by per cent in grade- and per cent in grade-. Labour charge was highest as per cent in grade-, followed by per cent in grade- and per cent in grade- and so on. n regard to channel-v, cost of marketing was higher as Rs in grade- followed by Rs and Rs in grade- and grade-, respectively. Proportionate expenditure was highest on transportation charges as per cent in grade- followed by per cent in grade- and per cent in grade-. Losses were found more as per cent in grade- followed by per cent in grade- and per cent in grade- and so on. Price spread in Pukraj potato marketing: Per quintal marketing cost, marketing margin and price spread in Pukraj potato marketing with respect to different channels were calculated and are presented in Table 5. The result revealed that in regard to channel-, price received by producer was higher as Rs for grade- followed by Rs for grade- and Rs for grade-. While cost incurred by producer was Rs.77.26, Rs and Rs for grade-, grade- and grade-, respectively. Thus, net price received by producer was higher as Rs for grade- followed by Rs in grade- and Rs in grade-. Further, cost incurred by retailer was more as Rs for grade-, Rs for grade- and Rs for grade-. While margin of retailer was also highest as Rs in grade followed by Rs and Rs for grade-, grade- and grade-, respectively. t implied that retailer had sold that produce to consumer at price of Rs for grade- followed by Rs for grade- and Rs.47 for grade-. Thus, marketing cost involved like cost incurred by producer and cost incurred by retailer was highest as Rs for grade-, Rs for grade- and Rs for grade-. While marketing margin was higher as Rs.91.31, Rs and Rs for grade-, grade- and grade-, respectively. Thus price spread was also higher as Rs , Rs and Rs for grade-, grade-, and grade-, respectively. n channel-, price spread in potato marketing was calculated and also is presented in Table 5. The results revealed that price received by producer from primary wholesaler was higher as Rs.83 for grade-, followed by Rs.77 for grade- and Rs for grade-, while cost incurred by producer was higher as Rs for grade-, followed by Rs for grade- and Rs for grade-. Hence, net price received by producer was higher as Rs , Rs and Rs for grade-, grade- and grade-, respectively. n next order, cost incurred by primary wholesaler was Rs for grade- followed by Rs for grade- and Rs for grade-, while margin of primary wholesaler was also higher as Rs for grade-, Rs for grade- and Rs for nternat. Res. J. agric. Eco. & Stat. 3(2) Sept., 2012:

6 ATUL P. KULKARN, B.R. PAWAR AND BASAVARAJ R. JAMAKHAND grade-. t inferred that primary wholesaler had sold that produce to retailer at Rs , Rs and Rs for grade-, and, respectively. n other words, price paid by retailer (channel-) was the same. The cost incurred by retailer was Rs.27.94, Rs and Rs while margin of retailer was Rs.67.06, Rs.63.10, and Rs for grade-, and, respectively. t implied that retailer had sold that produce to the consumer for Rs for grade- followed by Rs for grade- and Rs.54 for grade-. Thus, in this channel, marketing cost was higher as Rs followed by Rs and Rs for grade-, and, respectively, while marketing margin was Rs for grade-, followed by Rs and Rs for grade- and, respectively. Price spread was Rs Rs and Rs for grade-, and, respectively. n cannel, price spread in potato marketing was calculated and also is presented in Table 5. Price received by producer from secondary wholesaler was higher as Rs for grade- followed by Rs for grade- and Rs for grade-. Cost incurred by producer was Rs , Rs and Rs for grade-, and, respectively. Hence, net price received by producer was highest as Rs for grade- Table 5 : Per quintal marketing cost, marketing margin and price spread in Pukraj of potato marketing Sr. Particulars Channel- Channel- Channel- Channel-V No. 1 Net price received by producer (producer's share in consumer's rupee) 2. Expenses incurred by producer 3. Price received by Producer 4. Expenses incurred by primary wholesaler (channel ) Secondary Wholesaler (channel ), trader (channel-v), respectively 5. Margin of primary wholesaler (channel ), secondary wholesaler (channel-), trader (channel- V) 6. Price paid by secondary wholesaler 7. Expenses incurred by secondary wholesaler(channel-v) 8. Margin of secondary wholesaler (channel-v) 9. Price paid by retailer (channel,,, V), respectively 10. Expenses incurred by retailer (channel,,, V) 11. Margin of retailer (channel,,,v) (78.06) (8.85) (86.90) (78.67) (8.53) (87.20) (7) (12.18) (84.11) (72.02) (8.50) 77 (80.52) (4.78) (5.32) (72.75) (8.22) 83 (80.97) (4.55) (5.26) (63.49) (11.64) (75.14) (8.01) (5.26) (69.64) (11.30) (80.95) (3.03) (6.13) (70.94) (10.81) (81.75) (2.85) (6.08) (61.08) (16.78) (77.86) (4.62) (5.56) (62.63) (10.35) 79 (72.98) (6.28) (4.94) (84.19) (3.16) (4.38) (86.90) (2.84) (10.25) 12. Price Paid by consumer Marketing cost (11.69) 14. Marketing margin (10.25) 15. Price spread (21.94) (87.20) (2.73) (10.07) (11.25) (10.07) (21.33) (84.11) (4.53) (11.36) (16.65) (11.36) (28.00) (90.63) (2.80) (6.58) (16.06) (11.89) (27.98) (90.78) (2.71) (6.51) (15.48) (11.77) (27.25) (88.40) (4.41) (7.19) (24.05) (12.45) (36.51) (90.11) (2.91) (6.98) (17.24) (13.11) (30.36) 95 (90.68) (2.80) (6.52) (16.26) (12.61) (29.06) 49 (88.04) (4.48) (7.48) (25.88) (13.04) (38.92) (91.73) (2.98) (5.28) (22.77) (14.59) (37.37) (63.82) (9.89) (73.70) (5.88) (4.85) 99 (84.43) (2.97) (4.42) (91.83) (2.85) (5.32) (21.59) (14.59) (36.18) (52.09) (14.38) (66.47) (9.60) (4.05) (80.12) (4.57) (4.92) 60 (89.61) (4.23) (6.16) (32.78) (15.13) (47.91) 233 nternat. Res. J. agric. Eco.& Stat. 3(2) Sept., 2012:

7 SURPLUS & PRCE SPREAD N MARKETNG CHANNELS OF PUKRAJ POTATO N LATUR followed by Rs for grade- and Rs for grade-. n next order, cost incurred by secondary wholesaler was Rs.30.01, Rs and Rs for grade-, and, respectively, while margin of secondary wholesaler was highest for grade-, as Rs followed by Rs for grade- and Rs for grade-. t inferred that secondary wholesaler had sold that produce at Rs.95 for grade- followed by Rs for grade- and Rs.49 for grade- to retailer. n other words, price paid by retailer was the same. Cost incurred by retailer was Rs for grade- followed by Rs for grade- and Rs for grade-, while margin of retailer was Rs for grade- followed by Rs for grade- and Rs for grade-. t implied that the retailer had sold that produce to the consumer at Rs.105 for grade- followed by for grade- and Rs for grade-. Thus in this channel marketing cost was Rs , Rs and Rs for grade-, and, respectively. Marketing margin was Rs , Rs and Rs for grade-, and, respectively, whereas price spread was higher as Rs for grade-, followed by, Rs in grade- and Rs for grade-. n channel-v, price spread in potato marketing was calculated and is also presented in Table 5. t was clear that price received by producer from trader was higher as Rs for grade- followed by Rs.79 for grade- and Rs for grade-. While cost incurred by producer was Rs for grade- followed by Rs and Rs for grade- and grade-, respectively. Hence, net price received by producer was highest as Rs for grade-, followed by Rs and Rs for and, respectively. n next order, cost incurred by trader was Rs for grade-, Rs and Rs for grade- and, respectively, whereas margin of trader was highest as Rs followed by Rs and Rs for grade-, and, respectively. t inferred that trader had sold the produce at highest priced as Rs.99 for grade- followed by Rs for grade- and Rs for grade- to the secondary wholesaler (channel-v). n other words, the price paid by secondary wholesaler was same. The cost incurred by secondary wholesaler was Rs.35.04, Rs and Rs for grade-, and, respectively. Margin of secondary wholesaler was highest as Rs for grade- followed by Rs for grade- and Rs for grade-. t implied that secondary wholesaler had sold that produce to retailer for Rs for grade- followed by Rs for grade- and Rs.60 for grade-. n other words price paid by retailer was same. Cost incurred by retailer for grade- as Rs.33.47, Rs for grade- and Rs for grade-, while margin of retailer was highest as Rs for grade- followed by Rs for grade- and Rs for grade-. t implied that retailer had sold that produce to consumer for the highest price as Rs for grade- followed by Rs for grade- and Rs.67 for grade-. Thus, in this channel, marketing cost was higher as Rs in grade- followed by Rs and Rs for grade- and, respectively, while marketing margin was also highest as Rs for grade- followed by Rs for grade- and Rs for grade- and in this way, price spread was Rs for grade- followed by Rs for grade- and Rs for grade-. Producer s share in consumer s rupee was highest in channel- as per cent for grade- followed by per cent for grade- and 7 per cent for grade-. As we moved from channel- to channel-v, producer shares in consumer s rupee was decreased from grade- followed by grade- and then grade-. On the contrary, the proportionate share of marketing cost, marketing margin and price spread was continuously increased and was highest for grade- followed by grade- and grade- for all the channels. The findings are in confirmative with the results obtained by Nikam et al. (2007). Selvaraj and Krishnamoorthy (1991) studied on marketing and price buehaviour of potato from Tamil Nadu, Kushwaha et al. (1994) from Bihar, Singh et al. (1996) on economic analysis of potato marketing in Punjab and Vaidhya (1995) on marketing of seed potato in Himachal Pradesh. Authors affiliations: B.R. PAWAR AND ATUL P. KULKARN, Department of Agricultural Economics and Statistics, College of Agriculture, LATUR (M.S.) NDA LTERATURE CTED Kushwaha, R.K.S., Rana, O.P., Singh, G.N. and Maurya, O.P. (1994). Marketing of potato in district of Muzaffarpur (Bihar) in the context of diversified agricultural growth. ndian J. Agric. Mktg., 7(1): Naik, D. and Patnaik, S.C. (1989). An economic analysis of potato marketing in Orissa. J. ndian Potato Assoc., 16(1-2): Nikam, A.V., Shendage, P.N., Jadhav, K.L. and Deokate, T.B. (2007.) Marketing of kharif potato in Satara district of Maharashtra. ndian J. Agric. Mktg., 21(2): Selvaraj, K.N. and Krishnamoorthy, S. (1991). Study on marketing and price behaviour of potato in the Nilgiri district. Tamil Nadu. Agric. Mktg., 34(1): Singh, K., Chahal, S.S. and Kaur, P. (1996).An economic analysis of potato in marketing in Punjab. ndian J. Agric. Mktg., 10 (3): Vaidhya, C.S. (1995). Marketing of seed potato in Himachal Pradesh. ndian J. Agric. Mktg., 9(2): * * * * * * * * nternat. Res. J. agric. Eco. & Stat. 3(2) Sept., 2012: