VALUE CHAIN ANALYSIS OF RED GRAM IN KARNATAKA
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Date
2019
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PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY
Abstract
The present study entitled “Value Chain Analysis of Red gram in Karnataka” was
under taken to study conceptual frame work of red gram value chain, costs and margins at
different stages of value chain and their implication on farmer‟s income. Combination of
purposive and random sampling techniques was used for selection of district, taluks, market
functionaries and farmers required for the study. A total sample of 80 farmers and 10 each
of market intermediaries (commission agent, traders, wholesalers and retailers) and 10 dal
millers were selected for obtaining required data for the study. The primary data used in
this study to fulfil various objectives were collected through personal interview with the
help of pre-tested schedules designed for the purpose. The data collected were subjected to
various analytical tools including simple averages and percentages. Shepherd‟s formula and
Acharya‟s method were used to decide the marketing efficiency of different marketing
channels. Producer‟s share in consumer‟s rupee was worked out using price spread
analysis.
The average total cost of cultivation per hectare of red gram was Rs. 46190.06, Rs.
47976.04, Rs. 48883.43, Rs. 47509.57 and Rs. 47693.23 on marginal, small, medium, large
and pooled farms respectively. The yield obtained by red gram growers per hectare was
12.11, 12.45, 12.68, 12.31 and 12.40 qtls from marginal, small, medium, large and pooled
farms respectively. With an average market price of Rs.3893.75 per quintal, the gross
returns per hectare of red gram cultivation was Rs. 48282.50 on pooled farm however, the
gross return per hectare was Rs. 47094.46, Rs. 48519.39, Rs. 49293.50 and Rs. 48009.00
on marginal, small, medium and large farms respectively.
Value chain of red gram consists of different agents like farmer, commission agent,
trader, processor, wholesaler and retailer. Two major marketing channels for red gram were
identified in the study area. In channel I, farmers received a net price of Rs. 3730.26 per
quintal which is less than production cost, Rs. 3846.23. It was observed that the producer's
share in consumer's rupee was 78.13 per cent. The commission agent secured a margin of
Rs. 151.52 by incurring a cost of Rs. 48.48. On an average the processor incurred Rs.
833.30 for processing one quintal of red gram in the study area and realized a margin of Rs.
420.24. The wholesaler secured a margin of Rs. 92.87, while the margin obtained by the
retailer was Rs. 75.59.
In channel II, farmer received a net price of Rs. 3565.50 per quintal, which is less
than production cost, Rs. 3846.23. It was observed that the producer's share in consumer's
rupee was 76.12 per cent. The trader secured a margin of Rs. 136.38 per quintal of red gram
by incurring a marketing cost of Rs. 163.62. The processor incurred Rs. 833.30 per quintal
of red gram towards processing and realized a margin of Rs. 420.24. The wholesaler
secured a margin of Rs. 92.87, while the margin obtained by the retailer was Rs. 75.59.
The marketing efficiency with shepherd‟s method was relatively higher in marketing
channel I (2.49) than channel II (2.30). The same with Acharya‟s method was also found to
be higher in channel-I (1.86) than channel II (1.65). It is clearly revealed from the study
that the marketing channel in which the marketing costs and margins were low had the
highest efficiency.
The major constraints faced by farmers, commission agents / traders, processors,
wholesalers and retailers in the red gram value chain are low price at the time of harvest,
too much price fluctuations, frequent power cuts, lack of adequate processing and storage
godowns.
In order to strengthen and promote value chain direct linkage of farmers to processors
through suitable contract farming models are essential. The suggestions for improving red
gram value chain includes policy thrust and emphasis on developing cost effective
production technologies including farm machinery, thrust on small scale processing units
for self-employment in rural areas, liberal credit policy to establish and modernize
processing units and encouraging farmers associations for collective marketing and sales
promotions through wide spread marketing arrangements.
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D10,397