An Analysis of Marketing Channels and Price Spread of Chrysanthemum in Chikkaballapura District of Karnataka

Abstract

Chikkaballapura district is known for flower production and it stands forth in area and production of chrysanthemum production in Karnataka (2016-17). An attempt has been made in this study to assessing major marketing channels. The study also attempts to determine the price spread in major marketing channels. The study is based on the primary and secondary data. The total sample size comprised of 60 farmers also selected 20 market intermediaries for the study. In Chikkaballapura three major marketing channels were identified namely Channel I: Producer→ Commission agent→ Wholesaler→ Retailer→ Consumer Channel II: Producer→ Pre-harvest Contractor→ Commission agent cum Wholesaler→ Retailer→ Consumer. Channel III: Producer→ Village trader→ Retailer→ Consumer. About 65.00 % of the producer used Channel-I followed by channel-II (28.33%) and remaining through channel-III (6.67%). Price spread in channel-II is high (Rs. 8,985) as compared to Channel-I (Rs. 5,922) and producers share in consumer rupee is high in channel-I (58.51 per cent) which is considered to be better marketing channel as compared to channel-II (47.72 per cent). Proper market structure needs to be created to the floriculture crops in the study area and Chrysanthemum flower need to put under the list of notified commodities and commission charges taken from producer can be strictly prohibited.