Marketing Efficiency, Price Spread and Marketing Constraints Faced by Banana Growers in Maharashtra, India

Abstract

Banana (Musa spp.) is a major commercial fruit crop in India and contributes to farm income, rural employment and fruit-market trade. This study examined marketing channels, marketing efficiency, price spread, producer share and the primary marketing constraints faced by banana growers in Maharashtra. Primary data were collected from 400 banana growers using a structured, pre-tested interview schedule. Channel-wise cost and margin analysis, producer share in the consumer’s rupee, price spread, Shepherd’s Marketing Efficiency Index and Garrett’s ranking technique were used for the analysis. The findings showed that Channel II (Producer-Trader-Retailer-Consumer) was the predominant marketing channel, accounting for 47 per cent of farmers and 3,980 quintals of marketed produce. The highest producer share (83.67 per cent) was recorded in Channel I (Producer-Consumer), whereas the highest price spread (Rs 468/qtl) and the lowest producer share (60.61 per cent) were observed in Channel III (Producer-Exporter-Overseas Market). Transportation was the largest marketing cost component (Rs 120/qtl). Grade-I bananas accounted for 52 per cent of marketed surplus and formed the major share of exportable produce. Garrett ranking indicated that labour shortage and price fluctuation were the most important production and marketing constraints, respectively. The results suggest that collective marketing through FPOs, improved transport systems, storage facilities, grading practices and direct market channels may improve producer share and marketing efficiency.