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Marketing Losses and Their Impact on Marketing Margins: A Case Study of Banana in Karnataka

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  • Murthy, D. Sreenivasa
  • Gajanana, T.M.
  • Sudha, M.
  • Dakshinamoorthy, V.

Abstract

The explicit evaluation of the post-harvest losses at different stages of marketing and their impact on farmers’ net price, marketing costs, margins and efficiency have been presented. It has been found that the existing methods tend to overstate the farmers’ net price and marketing margins of intermediaries. In fact, the margin of the retailers’ after taking into account the physical loss during retailing has been found to be negative (loss), which otherwise, was positive (profit) in the conventional estimation. Similarly, the producers’ net share and wholesalers’ margins also decrease substantially. It has been shown that marketing efficiency is inversely proportional to the marketing losses. The co-operative marketing has been found to be a more efficient system in terms of both operations and price. Marketing cost has been identified as the major constraint in the wholesale marketing channel and bringing down the costs, particularly the commission charges as demonstrated in the co-operative channel, will help in reducing the price-spread and increasing the producers’ margin. The need for specialized transport vehicles for perishable commodities has been highlighted.

Suggested Citation

  • Murthy, D. Sreenivasa & Gajanana, T.M. & Sudha, M. & Dakshinamoorthy, V., 2007. "Marketing Losses and Their Impact on Marketing Margins: A Case Study of Banana in Karnataka," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
  • Handle: RePEc:ags:aerrae:47422
    DOI: 10.22004/ag.econ.47422
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    Cited by:

    1. Sampriti Baruah & Samarendu Mohanty & Agnes C. Rola, 2022. "Small Farmers Large Field (SFLF): a synchronized collective action model for improving the livelihood of small farmers in India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 323-336, April.
    2. Steven J. R. Underhill & Yuchan Zhou & Shukrullah Sherzad & Lila Singh-Peterson & Semua Militini Tagoai, 2017. "Horticultural postharvest loss in municipal fruit and vegetable markets in Samoa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1373-1383, December.
    3. Hatice Türkten, 2023. "Impact of Revenue Generated via Composting and Recycling of Wastes Produced in the Greenhouse Tomato Supply Chain on Reducing Income Inequality: A Case Study of Türkiye," Sustainability, MDPI, vol. 15(18), pages 1-12, September.
    4. Onuwa, Godfrey C., 2024. "Empirical Analysis of African Eggplant (Solanum gilo) Marketing and Income Disparity among Traders in Owerri, Imo State, Nigeria," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 24(1), March.
    5. Muhammed Cuhadar & Hakan Adanacıoglu & Naciye Oruc & Humeyra Sahin, 2019. "Comparison of Farmers’ Markets and District Markets in Terms of Marketing Efficiency: The Case of Seferihisar District in Izmir Province," Journal of Agricultural Studies, Macrothink Institute, vol. 7(3), pages 176-196, September.

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    Keywords

    Crop Production/Industries; Marketing;

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