Supply Chain and Marketing Channels of Fruits

Abstract

An agricultural supply chain can be defined as the entire set of production, distribution and marketing processes by which the consumer is supplied with a desired product (Woods 2004). Fresh produce is marketed through a range of different channels in many developing countries including India. These channels include the local market, wholesale market, supermarkets, retail shops, middleman and street vendor. Wholesale markets play a key role in supplying fresh produce to sub-wholesalers and retailers. Harvested fresh produce is brought to wholesale markets and after sale mainly by auction or on fixed price is loaded for district mandis, and from there forwarded to local markets, small traders, supermarkets and street vendors. The sale transaction at majority of wholesale markets begins at around 4 AM and end at 3 PM on the same day. Except Sundays and National holidays, all days are functional. Large volumes of produce are traded in wholesale markets. Supply chain of fresh fruits is important because it determines the producer’s share in consumer’s rupee. The farmer’s share of the price paid by the consumers is studied by many workers. According to Anantia (2008), the share of producer in consumer’s price depends upon the types of marketing channels. On an average, the share of producers varies between 33 and 75 % in case of fruits and vegetables. Another survey by Government of India (2001) reported that the farmer receives only one rupee out of every Rs. 3.50 paid by the consumer, whereas the retailer receives Rs. 0.75, the wholesaler Rs. 0.50 and rest of the amount Rs 1.25 goes to commission agents and traders. Marketing channels differ from produce to produce and from state to state. Always more than one marketing channel exists for each produce. Few of the supply chain of fruits are described here.