Value Chain Study of Rice: A Comparative Study of Bihar and Karnataka States, (India)
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Date
2016
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Dr. Rajendra Prasad Central Agricultural University, Pusa (Samastipur)
Abstract
The present investigation was aimed for analyzing comparative value chain addition of rice production and marketing in Bihar and Karnataka States,(India). The study was based on primary data collected from 300 stakeholders selected using simple random sampling method from two purposively selected districts East Champaran and Davangere of Bihar and Karnataka, respectively, duly categorized into paddy growers, paddy wholesalers, millers, rice wholesalers, rice retailers and consumers.
In the study, farmers were the first value adding actors, farmers could earn on an average of the gross return per hectare was Rs 44,641.8 (East Champaran) and Rs 1,32,117.26 (Davangere) by cultivating paddy. The farmers sell produce after meeting their family consumption and a little quantity was left with them as marketable surplus. They added value of Rs 115.71 per quintal by drying, Rs 86.77 per quintal by selling in markets and Rs 127.27 per quintal by storing (speculation) of produce to sell in future in case of East Champaran district and in case of Davangere district, the value addition was comparatively larger then East Champaran, indicating thoroughly Rs 132.85 per quintal, Rs 123.9 per quintal and Rs 165.9 per quintal of paddy, respectively. Farmers were not aware of value chain system theoretically, but practically some of them were following these methods. Paddy wholesalers were the second important key players in rice value chain. Paddy wholesalers used to collect paddy from local farmers in both districts under investigation and supplied to the rice millers in the same areas. The wholesaler added value of average Rs 65.8 per quintal and Rs 75.67 per quintal in case of both districts under study, respectively. Rice millers were the highest and important value adder in rice value chain, rice millers were added value in three stages purchasing of paddy, milling of paddy and selling of rice. Total selling cost was found Rs 36.39 per quintal and Rs 43.58 per quintal in East Champaran (Bihar) and Davangere (Karnataka) districts, respectively. The value addition by rice millers in East Champaran district was estimated about 81.21 per cent and 26.55 per cent, shared by marketing and milling, while it was 60.63 per cent and 32.95 per cent in Davangere district, respectively. Rice wholesalers were observed as the fourth actor in value chain, they gained less value addition, showing about 10.69 per cent (323.92 Rs/ quintal) and 11.05 per cent (412.79 Rs / quintal) with respect to rice purchase price, in both of East Champaran and Davangere districts, respectively. The profit earned from rice was Rs 2.38 per kg (East Champaran) and Rs 3.11 per kg (Davangere). Rice retailers were found to be final value chain actor in the rice value chain and they received less value addition among all actors. The profit earned by marketing of rice was estimated to be Rs 2.57 per kg and Rs 3.62 per kg of rice in both the districts under study. Consumers were the ultimate person who had designated position in value chain, even though they were not main actor in value chain.
It was observed that the trend for last three years of area, production and productivity of paddy produce were positive and constant growth, the productivity was found to be 42.91 quintal/ha in East Champaran, whereas in Davangere district, it was observed slightly decreasing trend, it might be due to diversification from paddy crop to other cash crops/plantation crops.
Lack of remunerative price, natural calamities and release of canal water and labour shortage etc. were identified as major constraints in production of paddy. Major marketing problems faced by farmers in the study area were unstable price, financial problem, transportation facility, middlemen etc. In case of paddy wholesalers, procurement and other expenses, financial problem, market instability and price fluctuation etc. were accounted for major constraints in the study area. Market fluctuation, financial problem, irregular supplies of produce, government policy were located as major constraints which were faced by rice millers in both the selected study area. The wholesalers revealed financial problem, procurement and other expenses, price fluctuation, market instability in both the district as meet from above. In case of rice retailers it was noticed that price fluctuation, financial problem, distant market, market instability, and competition were the main problems mainly faced by rice retailers, in both the study area. Some constraints were also reported by the consumers which were artificial scarcity, variation in price, and low quality of produce, adulteration, in both the districts of both the states under study. The problems/constraints as stated above might be addressed and decision steps must be taken by the concerned authorities/ officials to raise the income level of the farming community.
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