A Comparative Study on Marketing Cost, Marketing Margin and Price Spread for Open versus Protected Cultivation of Tomatoes

Abstract

The study aims to analyse the marketing cost, marketing margin, price spread, value added in the marketing system and efficiency of different distribution channels in tomatoes marketing which was produced under open and protected environment in Karnataka. The Acharya’s method of marketing efficiency was adopted for the study. The study was conducted during the year 2021 to 2022 in Karnataka. Primary data pertaining to the study were collected from 15 farmers each under open and protected cultivation practices in Kolar and Belagavi districts of Karnataka. The data related to market intermediaries are collected from 15 wholesalers, 15 retailers and 5 private companies from each district with the help of structured schedule. Three marketing channels were identified. These are producer to consumer, producer to wholesaler to retailer to consumer and producer to private companies to consumer. Though the channel comprising producer to consumer was more efficient and producer share in consumer rupee was the highest its share was very less out of the total volume of tomatoes marketed because of limited support from public bodies. The result shows that the channel involving producer to private companies to consumer was most prominent and had higher marketing efficiency and had better producer share in consumer rupee under both open and protected cultivation practices. The Government should take initiative through FPOs for upliftment of direct selling of produce to consumer.