VALUE CHAIN ANALYSIS OF COMMERCIAL VEGETABLES: A CASE STUDY OF KULLU DISTRICT OF HIMACHAL PRADESH
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Date
2017-09
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UHF,NAUNI
Abstract
ABSTRACT
The present study entitled “Value chain analysis of commercial vegetables: A case study of Kullu district of
Himachal Pradesh”. A sample of 90 farmers growing vegetables was selected using multistage random sampling
technique. The farmers were categorized on the basis of their total land holding as marginal (<1 ha), small (1-2 ha) and
medium (>2 ha). Two markets, namely Bhunter and Kullu were purposively selected to collect the information related
to markets and marketing. A sample of 5 local traders/commission agents, 5 wholesalers, 5 retailers and 30 consumers
were selected randomly for gathering the data of vegetable marketing in Kullu district. The annual transaction of
tomato, cauliflower and pea was 14539.30 MT, 5918.10 MT and 3146.50 MT, respectively from major production
pockets. Among different commercial vegetables in Kullu district pea occupied 34.38 per cent area followed by tomato
and cauliflower which was practically same i.e. 31.25 per cent. The cost of cultivation (based on cost D) per hectare
was observed to be Rs.174251.72, Rs.156174.26 and Rs.144517.71 for tomato, cauliflower and pea, respectively.
Overall gross returns from tomato, cauliflower and pea were Rs.368468.00, 253118.77 and 196772.20 per hectare,
respectively. Net returns per hectare over cost D in tomato, cauliflower and pea were Rs.210057.34, Rs.111142.17 and
Rs.65392.46, respectively. The value chain map highlighted the involvement of diverse actors, who participated
directly or indirectly in the value chain. Different actors identified in the study area were input suppliers, farmers,
traders/commission agents, wholesalers, retailers and ultimately consumer. Different enablers identified in the study
area were District Agriculture Department and Regional Horticulture and Agriculture Research and Training Stations at
Bajaura, Co-operative and Gramin banks, other Commercial banks, Agricultural Produce Market Committee (APMC)
Kullu and Lahaul Spiti. Four channels were identified in the marketing system of selected vegetables in the study area.
Four channels were identified in the marketing system of selected vegetables. Out of four channels, channel-C
(Producer-Local trader/commission agent-Wholesaler-Retailer-Consumer) was found most preferred channel by the
sample vegetable growers since 65.38, 50.79 and 58.23 per cent of tomato, cauliflower and pea was traded through this
channel. Degree of value addition in tomato varied from 7.26 per cent to 11.60 per cent, in case of cauliflower, it varied
from 4.57 per cent to 10.36 per cent and in case of pea, it varied from 2.20 per cent to 5.85 per cent among different
chain actors. Major constraints faced by farmers were related to shortage of skilled labour, high incidence of diseases
and pests high prices of inputs, price and yield risk, non- availability of quality seed and planting material and market
malpractices. Constraints faced by input suppliers were related to shortage of input providers at local level and problem
related to building trust in business. Traders and wholesalers faced problems related to poor and unhygienic condition
of market yards and unhealthy competition. Retailers faced intrinsic complexities of retailing. Similarly, consumers
also faced problems like high prices and unavailability of the produce as per the consumer’s demand.
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