Marketing System Analysis of Aromatic (Katarni) Rice in Bihar

Abstract

"Bihar is an important rice growing state of the country. Rice is grown on 3.15 million ha in the state, with a production of 6.15 million tonnes in 2020-21 (Economic Survey, Bihar, 2020-21). The state is also a traditional fine aromatic rice grower. Aromatic rice has potential for income generation and foreign exchange earnings due to its unique taste, flavor and better cooking quality. “Katarni Rice” is the most prevalent, ceremonial and finest quality scented rice of Bihar. It is famous for its aroma, palatability and chura (beaten rice) making qualities. The geographical production area of katarni rice lies in South Bihar Alluvial Gangetic Plane covering parts of South Bhagalpur, Banka, Munger and Jamui Districts. Due to its pleasant aroma and other favourable characteristics, it has a great demand in the state and throughout the country. Except for the grading in terms of size of grain, it has a comparable export potential to the Indian Basmati and can fetch a better price in the foreign market. Bhagalpur is a major katarni rice growing district. The katarni rice variety has been awarded G.I. tag was given by the Geographical Indications Registry, Chennai vide registration no. 553 on March 28, 2018 due to specific quality, aroma and taste. In view of urbanization, fragmentation of land, declining irrigation sources, non-availability of quality seed and other factor, its productivity is declining. In view of this, the study was undertaken in Bhagalpur district of Bihar (Crop Year 2018-19) to estimate the marketable surplus, marketing channels, marketing margins and price spread in marketing of katarni rice. The study is based on primary data collected from a sample of 90 katarni rice and 05 of each trader viz. village trader, wholesaler, processor/miller and retailer selected from six villages of Jagadishpur block of Bhagalpur district using Multi-Stage Random Sampling Technique. The average marketable surplus was estimated as 22.05 q (93.80% of production), which ranged from 37.17 q (95.50%) to 7.43 q (90.30%) among three categories of farms. The most prominent marketing channel was found to be Channel I (Producer - Village Traders/Miller - Retailer - Consumer) through which 56.67% of sample farmers sold their produce. The maximum producer’s share in consumer’s rupee was estimated as 68.33 % under Channel-I while under Channel II and Channel III it was 71.79 %. The major problem of katarni rice growers was availability of quality seed and selling the produce to Village Traders at lower price due to less quantity of marketable surplus as well as lack of transportation facilities available with them. The study suggested that alternate marketing system may be formulation of Farmer/Producer Company of katarni rice growers as well as availability of quality seed to enhance its profitability and productivity."