Abstract
The food supply chain in India is highly fragmented. The number of intermediaries in the chain is exceedingly high. These intermediaries are important because they act as a substitute for infrastructure where none exists. But over the years a layer of intermediaries has grown most of which add little value to the produce but collectively they add significantly to the final cost. This study carried out in the state of Bihar has found that the share of the farmer in the total margin across the value chain of potato is considerably low and the maximum part of the margin is cornered by the intermediaries. The study has also analyzed the contribution of value addition in total price escalation along the value chain and the share of farmer in the final retail price. The study has also listed the current constraints in the system and ends with recommendations towards weeding out inefficiencies from the current system.
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