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Agricultural Produce Supply Chain Network of Capsicum: Empirical Evidence from India

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  • Pankaj Thakur

    (Chaudhary Charan Singh National Institute of Agricultural Marketing (CCS NIAM), Jaipur 302033, India
    Department of Business Management, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India)

  • Piyush Mehta

    (Department of Business Management, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India)

  • Priyanka Lal

    (Department of Agricultural Economics and Extension, School of Agriculture, Lovely Professional University, Phagwara 144411, India)

  • Rashmi Chaudhary

    (Department of Business Management, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India)

  • Saswat Kumar Pani

    (Agribusiness and Innovation Platform, International Crops Research Institute for the Semi-Arid Tropics, Patancheru 502324, India)

  • Akash Gaurav Singh

    (Department of Genetics and Plant Breeding, Acharya Narendra Deva University of Agriculture & Technology, Ayodhya 224229, India)

  • Chhaya Devi

    (Department of Humanities and Social Sciences, National Institute of Technology, Hamirpur 177005, India)

  • Kamlesh Verma

    (ICAR-Central Soil Salinity Research Institute, Karnal 132001, India)

  • Prashant Sharma

    (Department of Silviculture and Agroforestry, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India)

Abstract

Vegetables are important for both nutritional and economic stability and contribute significantly to the agricultural landscape of India. The demand for vegetables is rising, driven by population growth and increased awareness of their benefits. This empirical study highlights the dynamics of agricultural production supply chain networks of capsicum crops in the northwestern Himalayan region, specifically Himachal Pradesh, India. The study employs the Acharya approach to analyse the various marketing channels utilized by farmers in the capsicum supply chain. This methodology sheds light on the economic nuances at each stage and examines marketing channels, costs, margins, price spread and marketing efficiency. Simultaneously, the Garrett ranking method is applied to discern and prioritize constraints faced by farmers. This comprehensive approach ensures a nuanced understanding of the economic and logistical intricacies of capsicum marketing. The analysis of marketing channels reveals five distinct pathways employed by farmers, with Channel-C (Producer–Commission Agent–Retailer–Consumer) standing out as the most dominant, representing 47.25% of the total quantity. Moreover, Channel-A (Producer–Consumer) proves to be the most cost-effective for producers and boasts the highest producer price, while Channel-C, involving commission agents, incurs higher costs. This suggests a preference for intermediaries, emphasizing factors like market access and negotiation skills, whereas Channel-D (Producer–Local Trader–Wholesaler–Retailer–Consumer) has the highest gross marketing margin, emphasizing the trade-offs between efficiency and transaction volume. The results indicate that while Channel-A is the most efficient, it is not the preferred choice due to the lower transaction quantity. Further, the absence of market consultation services, inadequate road infrastructure, high commission charges, nonremunerative prices and untimely availability of vehicles are the major constraints in marketing. The findings of the study call for targeted interventions to create a more robust and farmer-friendly marketing environment for capsicum crops in the region. The study proposes targeted recommendations, emphasizing collaborative efforts between stakeholders, government bodies and farmers. This research contributes to the academic discourse and also offers actionable insights for researchers and policymakers, fostering sustainability, profitability and equity within the capsicum supply chain.

Suggested Citation

  • Pankaj Thakur & Piyush Mehta & Priyanka Lal & Rashmi Chaudhary & Saswat Kumar Pani & Akash Gaurav Singh & Chhaya Devi & Kamlesh Verma & Prashant Sharma, 2024. "Agricultural Produce Supply Chain Network of Capsicum: Empirical Evidence from India," Economies, MDPI, vol. 12(1), pages 1-21, January.
  • Handle: RePEc:gam:jecomi:v:12:y:2024:i:1:p:24-:d:1321661
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    References listed on IDEAS

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    1. Bala, Brij & Sharma, Nikhil & Sharma, R.K., 2011. "Cost and Return Structure for the Promising Enterprise of Off-Season Vegetables in Himachal Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(1), June.
    2. Krafft, Manfred & Goetz, Oliver & Mantrala, Murali & Sotgiu, Francesca & Tillmanns, Sebastian, 2015. "The Evolution of Marketing Channel Research Domains and Methodologies: An Integrative Review and Future Directions," Journal of Retailing, Elsevier, vol. 91(4), pages 569-585.
    3. Salil Bhattarai & Michael C. Lyne & Sandra K. Martin, 2013. "Assessing the performance of a supply chain for organic vegetables from a smallholder perspective," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 3(2), pages 101-118, October.
    4. Salil Bhattarai & Michael C. Lyne & Sandra K. Martin, 2013. "Assessing the performance of a supply chain for organic vegetables from a smallholder perspective," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 3(2), pages 101-118, October.
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