Marketing Efficiency of Cashew Nut in Chikkaballapur, Karnataka, India: An Economic Study

Abstract

The study investigated the marketing channels involved in the distribution of cashew nuts in the Chikkaballapur district, analyzing Primary data were collected from 50 stakeholders constituting 25 farmers and 25 intermediaries in various channels, including producers, village traders, processors, wholesalers, retailers, and consumers. Three distinct marketing channels were identified: Channel I (Producer → Village Trader → Processor → Retailer → Consumer), Channel II (Producer → APMC Trader → Processor → Wholesaler → Retailer → Consumer), and Channel III (Producer → Processor → Wholesaler → Retailer → Consumer).The analysis revealed significant differences in price spread, marketing costs, margins, and producer’s share across the channels. Channel III emerged as the most efficient, with the lowest price spread (₹9,275), highest producer’s share in the consumer’s rupee (58.35%), and highest marketing efficiency (1.40). Conversely, Channel II showed the highest price spread (₹11,042.65) and marketing costs (₹3,766.65), while Channel I had the lowest efficiency (1.14). The producer's selling price increased from ₹11,026.20 in Channel I to ₹12,995.65 in Channel III, while the consumer’s purchasing price ranged from ₹22,270.65 in Channel III to ₹23,875.70 in Channel II. The study highlights the importance of reducing intermediaries to improve efficiency and enhance the producer’s share.