Economic Analysis of Marketing of Paddy in Northern Tamil Nadu, India

Abstract

Aims: This study aims to identify different marketing channels of paddy followed by farmers of Northern Tamil Nadu and analyze their cost and efficiency in marketing. Study Design: Multi-stage random sampling method was used to collect primary data. Place and Duration of Study: Ranipet district, Tamil Nadu, India between December 2022 and February 2023. Methodology: Primary data from 120 farmers and 30 market intermediaries including wholesalers, processors and retailers were collected. Secondary data was collected from published government documents. Marketing margin and Modified marketing efficiency were calculated by the Acharya Approach Results: Four different marketing channels were identified in which marketing through regulated market was found to be the most efficient channel as farmers received the highest net price for paddy. Farmers incurred more costs on labor and transportation among marketing costs. Unsatisfactory prices, lack of timely availability of credit, lack of storage and market information were found to be the constraints faced by farmers in marketing paddy Conclusion: Improving the credit facilities available to farmers immediately after harvest will enable them to get better prices for their produce. Increasing awareness of marketing practices and farmers’ training programs will improve marketing efficiency.