Supply chain managemnet in vegetable marketing : a comparative analysis
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Date
2008
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Journal ISSN
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Publisher
UAS, Dharwad
Abstract
Supply chain management is more important in the sector of agribusiness because
most of the agricultural products are perishable and have a very short shelf life. Bangalore
city was selected as the study area because of different formats practicing supply chain.
Mainly three models of supply chain techniques were selected, they were traditional,
cooperative and modern supply chain. A total of 45 farmers, 4 intermediaries, 15 retail
formats and 60 consumers were selected in aggregate from all the supply chain format
models. For the homogeneity of the products in which these formats dealing 4 vegetables
namely, tomato, cabbage, carrot and capsicum were selected because there were commonly
delt in large quantities in all the selected models of supply chain. Among the sample farmers
highest marketing cost was incurred by farmers in traditional format of the supply chain i.e.,
Rs. 1.6 per kg as compared to cooperative and modern supply chain i.e., Rs. 0.83 per kg and
Rs. 0.46 per kg respectively. The intermediaries were involved only in the traditional supply
chain. Among the retail formats, the cost incurred per kg of vegetables by traditional,
cooperative and modern supply chain was found out to be Rs. 1.63, Rs. 1.01 and Rs. 0.80,
respectively. But, the net return for one kg of vegetables was highest for cooperative retail
format i.e., 1.90 followed by modern and traditional retail format Rs. 0.79 and Rs. 0.63
respectively. The index of marketing efficiency was found out to be 1.97, 2.10 and 4.32 for
traditional, cooperative and modern supply chain respectively. Hence, modern supply chain
was found out to be more efficient than cooperative and modern supply chain. With highest
marketing cost incurred by farmers in traditional supply chain as compared to cooperative
and modern supply chain. At the same time modern and cooperative supply chain is having
the smallest price spread of Rs. 4.10 per kg and Rs. 4.10 per kg respectively. Hence these are
found out to be efficient when compared to that of traditional supply chain which is having
highest price spread i.e., Rs. 8.31 per kg. Hence it is advisable to the farmers to sell their
produce through modern supply chain and cooperative supply chain.