Estimation of Marketing Efficiency, Margin and Price Spread of Guava Fruit under Different Marketing Channels in Gujarat, India

Abstract

The present research investigates the Marketing efficiency, marketable surplus, marketing cost, margin and price spread of guava in the Bhavnagar district of Gujarat. Various marketing channels were analyzed to determine their efficiency. The Bhavnagar district was purposively selected, as it has the largest area and production of guava in Gujarat. A total sample of 120 respondents was selected for the study. For studying price spread, 40 merchants from each of the Bhavnagar and Mahuva regulated markets were selected as samples. The major analytical tools employed for the study were tabular analysis, price spread, marketing cost and marketing efficiency. The study found that selling through a commission agent incurred the highest marketing costs per quintal (Rs. 131.51), followed by wholesalers (Rs. 110.65), village traders (Rs. 99.87) and retailers (Rs. 83.95).  The marketable surplus constituted 93.65 per cent of total guava production. Among the channels studied, Channel-III (Producer - Commission Agent - Wholesaler - Retailer - Consumer) incurred the highest marketing cost per quintal, followed by Channel-II (Producer - Village Trader - Wholesaler - Retailer - Consumer) and Channel-I (Producer - Wholesaler - Retailer - Consumer). Channel-II recorded the highest marketing margin per quintal (Rs. 1555.26), followed by Channel-III (Rs. 1361.71) and Channel-I (Rs. 1158.65). The producer's share in the consumer's rupee per quintal was greatest in Channel-I (77.98%), followed by Channel-III (72.41%) and Channel-II (71.66%). According to Acharya's method, Channel-I is identified as the most effective marketing channel among the three.