AN ECONOMIC ANALYSIS OF FACTORS AND CONSTRAINTS OF PRODUCTION AND MARKETING OF MAJOR SPICES IN ASSAM
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Date
2021
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Publisher
AAU, Jorhat
Abstract
Spices are generally considered as high-value crops that can be included in the farm plan
to generate additional revenue in addition to the staple food crops. The climatic condition
of Assam is very much suitable to grow a variety of spice crops. The present study entitled
“An Economic Analysis of Factors and Constraints of Production and Marketing of Major
Spices in Assam” was conducted under two different agro climatic situations representing
plain and hill zones. Two districts, Karbi Anglong, a hill district and Jorhat, a plain district
were selected for the study. The study was designed to examine the trends in area,
production and productivity of spices using the exponential form. Over years data
pertaining for the period 2005-06 to 2019-20 on area, production and productivity for
important spices were collected and analysed for growth rates. Cobb-Douglas Production
Function and Multiple Linear Regression equations were used to examine the factors
influencing production and marketing of spices, respectively. The study also examined
the different marketing channels, price spread and marketing efficiency using various
market concepts. Furthermore, the constraints in production and marketing in both the
districts were studied separately based on growers' perceptions. The trends in area,
production and productivity of ginger, turmeric, chilli, black pepper, coriander and garlic
were examined for the state of Assam and both the districts. A positive and significant
growth rates were found in area, production and productivity of ginger, turmeric and chilli
in the state and both the districts. However, a negative trend was found in area and
production of black pepper in Jorhat district. Coriander productivity in Assam was also
found to be negative, which could be attributed to factors such as a lack of technological
advancements and the use of high yielding varieties. Furthermore, a negative growth was
found in garlic’s production and productivity in Karbi Anglong and area in Jorhat,
respectively. The significant factors affecting production of ginger and turmeric in the
hill district were operational land and human labor and while factors affecting ginger
production in the plain district were operational land and seed rhizome. The significant
factors affecting production of turmeric in the plain district were operational land, human
labor and capital at disposal. However, credit use had a significant and negative effect on
production. Operational land and human labor had a positive and significant effect on
chilli production while use of plant protection chemicals had a negative effect. Production
kept for home consumption and seed rhizome had a significant and negative impact on
marketable surplus in all the crops of the regions. However, in case of turmeric in the hill
district, selling price had a significant positive impact on marketable surplus.
Furthermore, post-harvest cost of turmeric in the plain district had a significant negative
impact on marketable surplus. The study of marketing of spices revealed that the different
marketing channels of ginger in the hill district include: Producer → Local/Itinerant
Trader → Wholesaler → Retailer → Consumer and Producer (through Growers
Cooperatives) → Wholesaler → Distant Market, while the different marketing channels
of ginger in the plain district include: Producer → Wholesaler → Retailer → Consumer
and Producer → Retailer → Consumer. The different marketing channels of dried
turmeric in the hill district include: Producer → Wholesaler-cum-Processor → Retailer
→ Consumer and Producer (through Growers Cooperatives) → Wholesaler-cum-
Processor → Distant Market while the different marketing channels of dried turmeric in
the plain district include: Producer → Wholesaler-cum-Processor → Retailer →
Consumer and Producer → Retailer-cum-Processor → Consumer. The different
marketing channels of chilli include: Producer →Retailer → Consumer and Producer →
Wholesaler → Retailer → Consumer. Also, the different marketing channels of black
pepper include: Producer → Retailer → Consumer and Producer→ Local Trader →
Wholesaler → Distant Market. Marketing efficiency of 9.75 (only up to wholesale level)
was found in channel II of ginger in hill district and Channel II (7.91) in plain district was
found to be more efficient. In case of dried turmeric, marketing efficiency of 14.66 (only
up to wholesale level) was found in channel II in hill district and Channel II (9.22) in
plain district was found to be more efficient. Channel I was found to be more efficient in
case of chilli (3.36) and black pepper (3.19), respectively. The major constraints that
affected production and marketing of ginger and turmeric in the hills were low adoption
of better and improved production practices and technology and presence of middlemen/
local traders respectively while the major constraints that affected production and
marketing of ginger and turmeric in the plains were unfavourable weather conditions and
poor market infrastructure respectively. The major constraint in the production of chilli
and black pepper was high cost of cultivation while the major constraint pertaining to
marketing of chilli and black pepper was low selling price in the local and distant market
during the peak time.