An analysis of price spread in marketing of lac in Madhya Pradesh

Abstract

The present paper examines the marketing costs and price spread in marketing of lac in the state of Madhya Pradesh. Two major lac producing districts i.e. Seoni and Balaghat have been selected randomly for the present study. Regarding data collection on marketing costs, margins and constraints in lac marketing, ten of each category viz. lac growers, market functionaries and manufacturers were randomly selected and interviewed during 2005-2006. Primary data have been collected from the respondents with the help of pre-tested schedule. Tabular analysis was used for the present work. The lac grower received Rs. 66 per kg. and the lac grower’s share in consumers price was 76.92 per cent. The primary purchaser received a margin of Rs. 212 per quintal and incurred Rs. 88 per quintal on marketing cost. The total marketing cost paid by the wholesaler was Rs. 1,506 per quintal. The wholesaler’s marketing margin was Rs. 174 per quintal. Arhat charges were 3 per cent of the transacted amount. The study has revealed that there is a tremendous scope to increase the profitability of lac growers in the study area by group marketing, co-operative marketing, establishment of processing units in the lac production catchments, provision of infra structural facility for marketing, strengthening of market extension network and promotion of quality consciousness amongst farmers, traders and manufacturers of lac.