Cost Efficiency and Profitability of Papaya Marketing Channels in North-eastern Karnataka, India

Abstract

The study on the economic analysis of papaya marketing in North-Eastern Karnataka, focuses on identifying the existing marketing system for papaya and analyzes the marketing cost, margin, price spread and marketing efficiency of different marketing channels. The study was conducted in four districts of North-Eastern Karnataka region and employed multistage random sampling technique to gather data from 80 papaya cultivators and 20 market intermediaries. Three major marketing channels were identified, each showing distinct cost structures and preferences among farmers. The findings highlighted that channel I was the most preferred among farmers, but it also exhibited the highest price spread compared to other channels. Channel III recorded the highest producer's share in the consumer's rupee (60.60%) and was identified as the most efficient channel based on both the Shepherd's approach (3.84) and the Acharya and Agarwal approach (1.54). The selection of a marketing channel significantly affects profitability and the distribution of risk among stakeholders. It is suggested that, due to the higher marketing costs incurred by farmers, they often opt to sell through pre-harvest contractors (PHCs). Therefore, it is recommended that these intermediaries be regulated through the Agricultural Produce Market Committee (APMC) to streamline the supply chain and improve market access for papaya growers.