Marketing Efficiency of Various Channels for Disposal of Natural Resins in Tribal Areas: A Case Study of Central and North Eastern Plateau Zones of India

Abstract

The present study was carried out to understand the existing marketing mechanism disposal pattern of natural resins and their marketing efficiency in a agro-climatic sub zone of Central and North Eastern Plateau of India. A total of 100 stakeholders including lac cultivators belonging to small, medium and large category of households; small traders, big traders, wholesalers and processors were selected randomly and interviewed for data collection. In the study area eight channels were operating and in a little quantum, LAMPS were also initiated in the procurement of kusmi lac at Minimum Support Price (MSP) as announced by Ministry of Tribal Affairs, GOI, New Delhi. The study found that the marketing efficiency across various lac marketing channels ranged from 0.93 in Channel-I to 2.07 in Channel-V during 2012 and as a result of the consequences of policy intervention by the government it found to range from 0.98 in Channel-I to 8.77 in Channel-VIII in 2016. In lac marketing, traders faced difficulty in storage and impurity of raw materials. Processing units were uncomfortable with unavailability of raw materials on time, unavailability of skilled labour, poor power supply and volatile market price. Lack of organized lac market was also observed in the study area. Institutions and government agencies should provide information and market support services to the lac growers. Positive approach should be taken by government to promote the domestic as well as overseas demand of lac based high value products. Financial assistance may be provided by financial agencies to safeguard the growers, trader and small lac processing firms.