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ECONOMICS OF PRODUCTION, MARKETING AND PRICE FORECASTING OF TURMERIC IN WARANGAL DISTRICT OF ANDHRA PRADESH

KrishiKosh

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Title ECONOMICS OF PRODUCTION, MARKETING AND PRICE FORECASTING OF TURMERIC IN WARANGAL DISTRICT OF ANDHRA PRADESH
 
Creator INBASEKAR, K
 
Contributor VASUDEV, N
 
Subject markets, marketing, turmeric, costs, productivity, marketing margins, manpower, sampling, economics, tillage equipment
WARANGAL DISTRICT, ANDHRA PRADESH
 
Description The present study entitled “Economics of production, marketing and price
forecasting of turmeric in Warangal district of Andhra Pradesh” was under taken to
overview the resource use efficiency, marketing costs, margins and price spread in
different channels of turmeric marketing, to study different price forecasting models to
predict turmeric prices, to identify the problems in turmeric marketing and suggest
suitable remedial measures.
The study was undertaken in the Warangal district of Andhra Pradesh, which
was purposively selected for the study as it is one of the most important turmeric
growing districts in Andhra Pradesh. A sample size of 90 farmers consists of marginal
and small and large farmers i.e. 30 each were identified for the present study. Three
mandals were purposively selected based on the highest area under turmeric cultivation.
In each mandal 3 villages were selected based the highest area under turmeric
cultivation. The ultimate sample of 90 farmers was randomly selected from marginal,
small and large farmers 10 each from each village to elicit the primary data for the
present study. The intermediaries involved in marketing of turmeric namely local
traders, commission agent, wholesaler, and retailer were also selected at the rate of five
from each category making the total sample size twenty. Thus the total sample included
90 farmers and 20 The primary data pertains to the agricultural year 2009-10 and
secondary data were collected over a period of time for the past five years (2005-06 to
2009-10) from agricultural market committee. The required information was elicited
through personal interview method from respondents by means of specially designed
and pretested schedules. Schedules were designed to elicit information from farmers,
middlemen and commission agents. Secondary data was collected from sources like
market committee records, CMIE and indiastat.com etc. The data collected were
processed through tabular and statistical analyses. The collected data were analyzed by
adopting average and percentage analyses, Cobb- Douglas production function.
The total cost of production was Rs 344767.77 for marginal farmers, Rs
320297.67 for small farmers and Rs 314730.24 for large farmers. The OLS estimates of
Cobb-Douglas production function for turmeric cultivation by marginal farmer revealed
that the coefficients of planting material, Labour and organic manure were positive and
significant. The OLS estimates of Cobb-Douglas production function for turmeric
cultivation by small farmer revealed that the coefficients of inorganic fertilizer and
irrigation were positive and significant. The OLS estimates of Cobb-Douglas
production function for turmeric cultivation by large farmer revealed that the
coefficients of human labour and irrigation were significant at one percent level of
probability.
Three types of marketing channels were identified in the study area and price
spread were estimated for each of the four marketing channels. From the analysis of
price spread the marketing channel III namely Farmer- Regulated market - Retailer-
Consumer was the efficient marketing channel.
Pest and disease, high labour cost, water scarcity, and low price were some of
the problems faced by sample farmers. The most important constraints identified by the
turmeric growers were higher price fluctuation and storage loss. The intermediaries
expressed that the lack of storage facility was the most important problem followed by
high marketing cost and poor quality of turmeric.
Based on the performance results of different forecasting models, ARIMA 110
was preferred mainly because of the lowest Mean Absolute Error, lowest Akaike
Information Criterion, lowest Schwarz’s Information Criterion and highest Adjusted R2
value.
Turmeric crop was found to be profitable with the benefit cost ratio of 1.93. So
the Horticulture Department has to take major initiatives to increase area under
turmeric cultivation in Warangal district. Higher price fluctuation was the major
constraint in the turmeric marketing. Hence establishing contract farming between
turmeric growers and turmeric processing units will reduce price fluctuation and
provide remunerative price to the turmeric growers during peak season. The State
Government may provide appropriate storage facilities. The farmers felt that high
labour cost was the second most important problem in cultivation of turmeric. . It is
proposed that employment generation programmes may not be implemented in peak
agricultural season.
 
Date 2016-06-07T10:53:08Z
2016-06-07T10:53:08Z
2011
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/66906
 
Language en
 
Relation D8837;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY