Assessing Marketing Efficiency in the Coconut Value Chain: A Case Study of Western Tamil Nadu's Coconut Landscape

Abstract

India, the world's leading producer of coconuts, also faces challenges in optimizing farmer returns within its coconut value chain. This study investigates the marketing efficiency of Coconut value chain in Western Tamil Nadu, a significant contributor to national production. A multi-stage random sampling technique was employed to collect data from 300 coconut farmers, intermediaries (commission agents, harvest contractors), processors, wholesalers, retailers, and consumers across four districts (Coimbatore, Tirupur, Erode, and Namakkal). Marketing efficiency was assessed using Shepherd's method, Acharya's modified approach (incorporating post-harvest losses), and Calkin's index. Three marketing channels were identified: (i) Through Harvest Contractors (CVC I), (ii) Through Commission Agents (CVC II), and (iii) Through Farmer Producer Companies (FPCs) (CVC III). This article delves into the factors contributing to these results, explores the existing literature on coconut marketing efficiency, and proposes FPCs as a key strategy for enhancing farmer livelihoods in the region. The findings highlight the dominance of FPCs (CVC III) as the most efficient marketing channel across all districts, followed by CVC I (through harvest contractors) in most cases.