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A STUDY ON SUPPLY CHAIN MANAGEMENT AND MARKETING OF POTATO IN MEDAK DISTRICT OF ANDHRA PRADESH

KrishiKosh

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Title A STUDY ON SUPPLY CHAIN MANAGEMENT AND MARKETING OF POTATO IN MEDAK DISTRICT OF ANDHRA PRADESH
 
Creator SHIVA KUMAR, P
 
Contributor VASUDEV, N
 
Subject SUPPLY, CHAIN, MANAGEMENT AND MARKETING, POTATO, MEDAK DISTRICT, ANDHRA PRADESH
 
Description In India most of the potato production is from Northern states only. But in South
India states like Andhra Pradesh and Karnataka the potato crop has been cultivating in
rabi season. In case of Andhra Pradesh, Medak district accounts for more than 50 per
cent of the total production. It has suitable environmental conditions and soils for
potato cultivation in winter season. The crop provides quicker income to the farmers
and important in human diet. But the fluctuating prices, existence of large number of
intermediaries, unorganized marketing, increasing of value added products etc., lead to
decreasing of producer’s share in consumer’s rupee and less marketing efficiency.
Hence the present study entitled “A Study on supply chain management and marketing
of potato in Medak district of Andhra Pradesh” was undertaken to study the overview
of supply chain management, marketing efficiency, price spread and problems faced in
marketing of potato.
All the necessary information required for the research was collected through
survey method, by personally interviewing the farmers using the pre-tested schedule.
Data collected from primary and secondary sources were employed with tabular
analysis. The farm income measures like gross income, net income, farm investment
income, farm business income and marketing aspects like marketing costs, marketing
margins, price spread, marketing efficiency and producers share in consumer’s rupee
was worked out under different channels. Acharya modified method was used to decide
the marketing efficiency of different marketing channels. Step wise log-linear
regression analysis was carried out to determine the factors influencing marketing
efficiency. Garrett ranking analysis was carried out to identify the constraints in potato
marketing.
The estimated gross income from one hectare of potato crop was Rs.1,12,800. The
potato farmers realized a net income of Rs.63,441.57 per hectare, the farm business
income was Rs.76,764.60 per hectare, family labor income earnings was Rs.65,528.50
and the farm investment income per hectare was Rs.74,677.70.
The major marketing channels identified are
1. Producer – APMC- Wholesaler- Retailer- Consumer
2. Producer – APMC- Super market- Consumer
3. Producer – APMC- Processor- Consumer
4. Producer - Wholesaler- Retailer- Consumer
5. Producer - Retailer- Consumer
The most prevalent marketing channel in potato marketing was channel –I. It is
followed by channel –II and III. The percentage of produce sold through these three
channels was 94.90. It indicated that 88.33 per cent of sample farmers preferred to sell
through APMC, because there is a guarantee of produce purchased by any of the buyers
at APMC. In case of channels – IV and V the quantity of produce moved was very less.
Because of the local wholesalers and retailers could not handle huge quantity of
produce at a time due to high perishability and lack of storage facilities.
The producer share in consumer rupee was highest in channel-V (62.65%) due to
the presence of only one intermediary and less marketing costs incurred, lowest in case
of channel- III (3.05%) due to more marketing costs and margins of processor. In
channels - I, II and IV the producer’s share in consumer rupee was 44.75%, 31.52%
and 51.04% respectively.
The market efficiency was found to be high in channel V i.e., 1.67 compared to all
the channels in Acharya modified method. Less marketing efficiency was reported in
channel- III i.e., 0.03 due to high marketing costs incurred by the processor and also
high retail price.
The step wise log- linear regression analysis revealed that the adjusted R2 =
87.6%, showed that about 87.6% of total variation in marketing efficiency was
explained by variables included in the model. Out of seven variables included in the
model three variables significantly explained the variation in marketing efficiency per
quintal of potatoes sale. The results showed that the marketing costs (-1.027), market
margins (-0.889) and consumer purchasing price (0.965) were found to be significant at
1% level of significance keeping other factors at constant level (Ceteris paribus).
In Garrett ranking analysis farmers reported that price fluctuations was the most
important constraint followed by lack of cold storage facilities. Wholesalers and
retailers reported that the major constraints felt by them was more spoilage losses and
fault in weighing.
Promoting the export of the produce in case of glut in the market, establishment
of cold storages at farmers level, need to establish more processing units, modernize the
APMCs, and reduce the entry barriers for the organized retail were the major policy
changes required to improve the efficiency of potato supply chain.
 
Date 2016-09-08T14:50:57Z
2016-09-08T14:50:57Z
2014
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/76115
 
Language en
 
Relation D9674;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD