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Vol. 12, Issue 6 (2023)

Price spread and marketing efficiency of tea marketing channels in district Kangra, Himachal Pradesh

Author(s):
Nitika Parmar, Dr. Mukesh Kumar Maurya and Avinash Mishra
Abstract:
The purpose of the study was to identify marketing channels, price spread, marketing margins, and marketing efficiency of tea in Kangra district, Himachal Pradesh, India. The primary data was collected by the survey method. The study focusses on 50 tea farmers. It was conducted in Kangra district, Himachal Pradesh, which has the highest area under cultivation and production in Himachal Pradesh. The selection of channel actors was made using a two-stage stratified random sampling technique. Three major marketing channels identified in the study were-
Channel I: Producer – Factory – Consumer
Channel II: Producer – Commission Agent – Factory – Consumer
Channel III: Producer – Sub Agent – Commission Agent—Factory – Consumer
The farmers had to incur high expenses for transportation, and storage, whereas for other intermediaries in all the channels, transportation, loading/unloading, were the major marketing costs. The marketing efficiency was more of Channel I > Channel II> Channel III. Comparing Channel, I, II, and III, it was revealed that the relatively lower marketing efficiency was due to one additional intermediary (a commission agent). The price spread was low in Channel I as the produce was sold to factory directly by the farmer. The total marketing margin was more in Channel III. The Producer’s share in consumer rupee is more in Channel I due to a smaller number of middlemen. The paper provides information for selecting the right marketing channels for tea marketing.
Pages: 500-503  |  236 Views  137 Downloads


The Pharma Innovation Journal
How to cite this article:
Nitika Parmar, Dr. Mukesh Kumar Maurya, Avinash Mishra. Price spread and marketing efficiency of tea marketing channels in district Kangra, Himachal Pradesh. Pharma Innovation 2023;12(6):500-503.

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