Economic analysis of production and marketing of paddy in Tamil Nadu

Abstract

The study examines the profitability of rice production and marketing to evaluate the performance of different marketing channels in Tamil Nadu. Primary data were collected randomly from 120 farmers and 30 market intermediaries who comprise wholesalers, processors and retailers. Three different marketing channels were identified in the study area, of which, marketing through Direct Purchase Centre (DPC) of Tamil Nadu Civil Supplies Corporation found to be the most efficient channel since it provides higher net income to farmers. The problems such as high cost involved in different marketing functions, distant location of government procurement centers, delayed payment and lack of market information and intelligence services are hindering farmers to realize their higher returns. The study suggests that reducing post harvest losses at farm level, developing adequate market infrastructures and prompt delivery of payments at the procurement centers would be helpful to farmers realize higher net income.