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Resource Use Efficiency and Marketing Channels for Pomegranate in Chitradurga District of Karnataka, India: an Economic Analysis

Ravikumar, K. T., Hosamani, S. B., Mamle Desai, N. R.
Acta horticulturae 2015 no.1089 pp. 229-235
contractors, fertilizers, fruits, growers, labor, marketing channels, marketing costs, markets, packing material, pomegranates, prices, production functions, transportation, villages, India
The study was carried out to analyze the cost and returns in pomegranate cultivation and efficiency of marketing channels in Chitradurga district, Karnataka State, India. The study utilized the primary data collected from a sample of 120 farmers spread across 14 villages of two taluks in Chitradurga district. Further, a sample of 10 each of preharvest contractors and retailers were also selected for enumerating the data on marketing costs and margins. Tabular analysis and Cobb-Douglas production function were used for data analyses. The results revealed that expenditure on labour and manures and fertilizers were found to have positive influence on production and were significant at 1 and 5% level, respectively. The ratio of marginal value product and marginal factor cost were positive and more than unity for the resource fertilizer and manures for both Challakere and Hiriyur taluks. The ratio of marginal value product and marginal factor cost was negative and more than unity for the resource PPC whereas negative below unity for the resource labour for sample farmers of both Challakere and Hiriyur taluks indicating that resources were in excessive use. The cost of marketing incurred by the growers who sold at the market for a quintal of fruits amounted to ₹ 442.31 and ₹. 439.12, respectively for Challakere and Hiriyur taluks. The commission charges, transportation costs and cost of packing material were major components of marketing cost. The net profit of retailer was 1.93 and 1.31% (₹ 164 and 110 per quintal) and profit of pre harvest contractors was rupee 895 and rupee 876 per quintal (10.53 and 10.41%) and the price spread was 70.07 and 69.73% in Challakere and Hiriyur taluk, respectively. The producer’s share in consumer’s rupee was less in Channel-II compared to Channel-I i.e., 29.93 and 30.27%.