A study on Marketing Channels and Efficiency, and Factors Influencing the Selection of Marketing Channels by the Pomegranate Growers in Karnataka

Abstract

Karnataka is the third largest producer of pomegranate in India. Pomegranate holds 6th position in overall fruit production with share of 4.5% next to Papaya (6%) in the state of Karnataka during 2019-20. Chitradurga and Tumkur districts were selected based on the major pomegranate cultivating areas in South Karnataka. This study was proposed to identify the marketing channels and it’s efficiency, and factors influencing the selection of marketing channels by the pomegranate growers in Karnataka. From the selected pomegranate producing districts, four taluks were selected for the study, i.e., Hiriyur and Hosadurga taluks from Chitradurga district, Sira and Pavagada taluks from Tumkur district. From each taluk 30 sample respondents were selected, a total of 120 sample respondents were selected randomly for the study. In addition a sample of 40 market intermediaries were selected, i.e., pre-harvest contractors, commission agents cum wholesalers, wholesalers, and retailers from each 10 respondents were selected, to workout marketing cost and marketing margins for pomegranate. Based on the study findings, three different marketing channels were prominently followed by the pomegranate growers in the selected districts. Channel I: Producer → Pre-harvest contractor → Commission agent cum wholesaler → Retailer → Consumer, Channel II: Producer → Commission agent cum wholesaler → Retailer → Consumer and Channel III: Producer → Wholesaler → Retailer → Consumer. The study also revealed that 59.2% of the sample respondents followed channel I, 26.7%, followed channel II and 14.2% followed channel III. Further, it was found out that, channel I has low marketing efficiency i.e., 1.412, compared to Channel II (1.542) and channel III (1.932).The Channel III has more efficiency (1.932) because the total marketing cost incurred in the channel III was low i.e., ₹. 2258.7 per quintal, compared to channel I (₹. 2914.26 per quintal), and channel II (₹. 3067.5 per quintal). The results on the factors influencing the selection of marketing channels by the pomegranate growers was analyzed by using the relative importance index. The findings revealed that factors influencing to select channel I are high price fluctuations in the market, distant market, high transportation cost, ease of selling at the farm gate, and non-availability of storage and warehouse facilities, are relatively more important factors. The study also concluded that factors influencing to select channel II and channel III in the study area are availing market regulated prices, bulk sales, availing better rates or prices, timely payment, and price fixation by APMC are relatively more important factors. Profit maximization and searching for fruit exporters and bulk buyers is the main intention to choose channel II and channel III by the pomegranate growers. By considering all aspects, it is concluded that majority of the sample respondents preferred to sell their produce through channel I because the ease of selling the produce at the farm gate, and to reduce the risk of transportation, storage etc.