Marketing Channels and Marketing Efficiency of Medicinal Plant Growers: Evidence from Himachal Pradesh, India

Abstract

This study examined the marketing channels and marketing efficiency of medicinal plant growers in Himachal Pradesh, with evidence from Kangra and Hamirpur districts during the agricultural year 2023–24. Primary data were collected from 300 medicinal plant growers, comprising 150 Tulsi growers, 100 Aloe vera growers and 50 Chamomile growers, using stratified random sampling. The study focused on three medicinal crops: Tulsi (Ocimum sanctum), Chamomile (Matricaria chamomilla) and Aloe vera (Aloe barbadensis). Descriptive statistics were used to examine the socio-economic profile of respondents and the distribution of growers across marketing channels. Marketing efficiency was estimated using Acharya’s approach. Three major marketing channels were identified: Channel 0 (Farmer–Middlemen–Consumer), Channel I (Farmer–Consumer) and Channel II (Farmer–Industry). Channel 0 was the dominant channel across all crops, indicating farmers’ continued dependence on intermediaries. Channel I recorded the highest marketing efficiency value of 6.50, followed by Channel II with 3.98 and Channel 0 with 2.67. Although direct marketing was the most efficient channel, processor-linked marketing provided the highest price realisation to farmers. The findings suggest that improved infrastructure, stronger Farmer Producer Organisations, better market information and farmer–industry linkages can enhance marketing performance and reduce dependence on intermediaries.