Price Spread for Capsicum in Akola District of Maharashtra

Abstract

The price spread refers to the difference between the price received by the growers and the price paid by the consumers. It was observed that there were wide variations of price received by the growers and the price paid by the ultimate consumer. This study was conducted for estimation of marketing cost, marketing margin and price spread through different marketing channels of capsicum in Akola district. The study was based on primary data and secondary data for the year 2016-17, collected from the vegetable market of Patur, Barshitakli, Akola and Murtizapur tehsils in Akola districts of Maharashtra, the total 120 producers,10 wholesaler, 10 retailers were selected for  the study. Two major marketing channels were identified for the capsicum i.e. channel-I: Producer→ Wholesaler→ Retailer→ Consumer, Channel-II: Producer→ Retailer →Consumer. The channel -I was found most important channel of distribution. Producer‘s share in consumer’s rupees was highest in channel II as compared to cannel I were worked out 68.11 and 56.79 per cent. Wide variation were observed in the constraints of capsicum growers. Price spread of capsicum not only show the cost and margins at different levels of marketing by different agencies but also show a clear picture of entire system of marketing of capsicum. Wide variation were observed in the problems faced by the capsicum growers. Lack of processing facilities, lack of storage facility, high commission charges, lack of financial facility etc. Thus establishment of modern regulated market along with proper storage facilities in nearby areas will go a long way in enhancing the income of the farmers. Higher marketing efficiency and better return to producers through direct marketing. This is a clear indicator for developing farmers market in the region and As such establishment of producers co-operation to reap the benefit from cultivation on marketing of capsicum crop is suggested.