A study on marketing of marigold in western Maharastra

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1 Volume 5 Issue 2 September, e ISSN International Research Journal of Agricultural Economics and Statistics Visit Us - DOI : /HAS/IRJAES/5.2/ Research Paper A study on marketing of marigold in western Maharastra R.A. KOLAMBKAR, R.R. SURYAWANSHI, H.R. SHINDE AND K.V. DESHMUKH See end of the paper for authors affiliations Correspondence to : R.A. KOLAMBKAR Department of Agricultural Economics, College of Agriculture, Vasantrao Naik Marathwada Krishi Vidyapeeth, PARBHANI (M.S.) INDIA kolambkar.rachana 14@gmail. com Paper History : Received : ; Revised : ; Accepted: ABSTRACT : The study pertained to Kolhapur and Sangli districts of Western Maharashtra where marigold is cultivated extensively. The studty examined various economic aspects of marigold such as assessment of price spread, producer's share in the consumer's rupee, marketing cost and margins, marketing practices, channels involved in the marketing of marigold and problems faced by the growers in marketing of marigold. A sample of thirty farmers each were drawn from six randomly selected villages in the Hatkanangale tehsil of Kolhapur and Miraj tehsil of Sangli, total sixty sample farmers were selected for the study. Following Three marketing channels were identified in the study area for marketing of marigold Channel I: Producer - Commission agent - Wholesaler - Retailer - Consumer. Channel II: Producer - Wholesaler - Retailer - Consumer. Channel III: Producer - Consumer. Among these channels, per cent quantity of marigold moved through channel- I, per cent through channel- II and per cent through channel- III. Marketing cost in the sale of marigold was Rs , Rs and Rs per quintal in channel-i, channel- II and channel- III, respectively. As such marketing cost was lower in channel- III and higher in channel- I. Marketing margins earned by the different agencies were highest in the channel- I (Rs per quintal) and it was lowest in channel- II (Rs per quintal). The producer's net share was maximum in channel- III (100 per cent) and minimum in channel- I (85.74 per cent) which was favourable to the producer. Out of all farmers, per cent reported the problem of higher commission charges followed by delay in payment, high cost of transportation, lack of skilled labour for grading of flowers and lack of information of market prices in the study area. KEY WORDS : Marketing, Marigold, Disposal, Price spread HOW TO CITE THIS PAPER : Kolambkar, R.A., Suryawanshi, R.R., Shinde, H.R. and Deshmukh, K.V. (2014). A study on marketing of marigold in western Maharastra. Internat. Res. J. Agric. Eco. & Stat., 5 (2) : INTRODUCTION Marigold flower cultivation is getting increasingly popular among farmers. Marigold, belonging to family Asleraceae, is an important and popular flower of India and ranks third in number after roses and chrysanthemum. It is the native of America. It is an important ornamental herb grown for its highly decorative and long lasting flowers. The commercial cultivation of seedling plot of marigold is a source of income and employment to marginal farmers as well as large farmers. Therefore in Maharashtra ordinary cultivators also cultivate marigold as a loose flower. Marigold is a very important flowering plant useful for garlands, garden disc play, loose flowers and perfume industries, Marigold is one such potential flower crops for natural colour extraction. Marigold is not only grown as ornamental cut flowers and landscape plant but also as a source of natural caretenoid pigment for poultry feed. Marigold cultivation in India is no doubt spread throughout the country with considerable concentration of area in the states of Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra. The golden coloured marigold varieties are grown in a field on a large scale in the peninsular India for lower market. It is grown for decorative as well as market purpose on commercial scale as a cash crop in many parts of

2 R.A. KOLAMBKAR, R.R. SURYAWANSHI, H.R. SHINDE AND K.V. DESHMUKH state of Maharashtra. Despite its commercial importance, marigold cultivation is known to have serious limitations due to its shorter blooming period and qualify deterioration during storage and transit. Restricted bloom period for marigold viz., March-April and November-December brings in many problems of marketing. The glut in the market brings down the prices. Similarly exploitation of the producers by commission agents leads to reduction in the profit of the producers. Objectives of the study : Keeping in the view the above facts the study was conducted on marketing of marigold in western Maharashtra which was planned with the following objectives: To study the marketing channels involved in marketing of marigold. To study the price spread and producer's share in consumer's rupee. To identify the problems faced by the growers in marketing of marigold. MATERIALS AND METHODS The Kolhapur and Sangli districts of Western Maharashtra were selected purposively for the present study on marigold. Both the districts have medium to light type of soil with limited irrigation facilities. The area under marigold in Kolhapur and Sangli district was 1,025 and 1,138 hectares, respectively, with an area of and hectares in Hatkanangale and Miraj tehsils of respective districts. Keeping in view the highest acreage under marigold, Hatkanangale and Miraj tehsils were selected for the present study. From each tehsil, three villages were selected purposively and from each village, 10 sample farmers were selected randomly. The respondents from each market functionaries such as commission agents, wholesalers and retailers were selected randomly. The middlemen were personally interviewed to obtain marketing information. The major proportion of the produce from the selected area is marketed to Mumbai market. The survey method of economic investigation was adopted for data collection. A specially designed questionnaire for getting the information on marketing and other related aspects was used. The collected data were complied, tabulated and analyzed to accomplish the objectives of the present study. RESULTS AND DATA ANALYSIS The results emerged out from the primary and farm level data of marigold are given under the following heads: Marketing channels: The following three channels were identified in the study area for marketing of marigold: Channel I: Producer Commission agent Wholesaler - Retailer - Consumer. Channel II: Producer Wholesaler Retailer Consumer. Channel III: Producer Consumer. Among these channels, per cent quantity of marigold moved through channel- I, per cent through channel- II and per cent through channel- III. Disposal pattern of marigold flower of sample farmers : Per farm total production of marigold and its disposal pattern is presented in Table 1. It is observed from Table 1 that per hectare total production of marigold was quintals of which per cent quantity was marketed surplus. The share of grade I, II, III and IV in total quantity sold was 40.29, 27.35, 9.94 and per cent, respectively. The proportion of flowers used for family purpose was 0.15 and that of damaged flowers due to pests and diseases and during handling was to the extent of 5.82 per cent of total production. Channel wise quantity sold and price realized in marketing of marigold : The number of sample farm and quantity sold in different channels have been presented in Table 2. From the Table 2 it is clear that maximum quantity of flowers sold through II channel was with the share of per cent to the total quantity, followed by I and IIIchannel with the share of and per cent to the total quantity sold. This showed that in study 144 Table 1 : Disposal pattern of marigold flower of sample farmers Sr. No. Particulars Quantity (Qtls.) Rs./qtl. Value (Rs.) 1. Grade wise quantity sold (94.02) (97.16) Grade I (40.29) (52.42) Grade II (27.35) (26.72) Grade III (9.94) (8.93) Grade IV (16.44) (9.09) 2. Family use 0.19 (0.15) (0.07) 3. Damaged flowers 7.25 (5.82) (2.77) 4. Total quantity produced (100) (100)

3 STUDY ON MARKETING OF MARIGOLD Table 2 : The number of sample farms and quantity sold in different channels (Quintals) Channel Marigold Sample farmers (No.) Quantity sold Value (Rs.) I. 24 (40.00) (33.29) II. 19 (31.66) (41.77) III. 17 (28.33) (24.93) Total (100.00) area channel II followed more rapidly than other two channels. Same has been depicted in Fig. 1. More or less similar results were obtained by Gaikwad (1981) on jasmine in Coimbatore city, Jyothi and Raju (2002) on jasmine and rose in East Godavari of Andhra Pradesh, Mitra et al. (1989) on marketing of jasmine in Nadia (W.B.) and Suryawanshi and Kapade (1979) on production and marketing of roses in Western Maharastra. Per quintal cost of marketing of marigold in different channels : The channel wise per quintal cost of marketing of marigold is presented in Table 3. It is revealed from the table that the per quintal cost of marketing of marigold flower was Fig.1: Channel wise quantity sold and price realized in marketing of marigold. highest (Rs ) in channel I and was followed by channel II and channel- III with the magnitude of Rs and Rs per quintal, respectively. The cost on the items such as commission charges, transport and packing material were observed to be highest share in total marketing cost in channel I and II which accounted for 78.52, 14.38, 4.48 per cent and 84.69, 8.60, 4.77 per cent, respectively, whereas transport (Rs.43.49) and packing charges (Rs ) were the major item of marketing cost in channel-iii. Similar work was also Table 3 Per quintal cost of marketing by sample farmers (Rs.) Sr. No. Items of cost Channel I Channel II Channel III 1. Packing (4.48) (4.77) (41.79) 2. Transportation (14.38) (8.60) (43.49) 3. Weighing 0.00 (0.00) 0.00 (0.00) 2.15 (5.32) 4. Commission (78.52) (84.69) 0.00 (0.00) 5. Hamali 9.23 (1.35) 4.44 (1.11) 3.80 (9.40) 6. Losses during transit 8.70 (1.27) 3.32 (0.83) 0.00 (0.00) Total marketing cost (100.00) (100.00) (100.00) Table 4 : Per quintal price spread in marketing of marigold flowers Sr. No Particulars Channel I Channel II Channel III 1. Gross price received by the producer 4112 (85.74) 3752 (90.36) 2510 (100.00) 2. Market expenses incurred by the producer 2087 (43.52) 1562 (37.62) 1095 (43.63) 3. Net price received by the producer 2025 (42.22) 2190 (52.74) 1415 (56.37) 4. Commission received by the commission agent (4.13) 0.00 (0.00) 0.00 (0.00) 5. Expenses incurred by the commission agent (1.62) 0.00 (0.00) 0.00 (0.00) 6. Margin of the commission agent (2.52) 0.00 (0.00) 0.00 (0.00) 7. Commission received by the wholesaler (3.78) (4.30) 0.00 (0.00) 8. Expenses incurred by the wholesaler (0.65) (0.68) 0.00 (0.00) 9. Margin of the wholesaler (3.13) (3.63) 0.00 (0.00) 10. Commission received by the retailer (2.17) (3.86) 0.00 (0.00) 11. Expenses incurred by the retailer (0.79) (0.80) 0.00 (0.00) 12. Margin of the retailer (2.49) (3.06) 0.00 (0.00) 13. Price paid by the consumer in the market ) (100.00) 2510 (100.00) Figures in the parentheses are percentages to the respective total 145

4 R.A. KOLAMBKAR, R.R. SURYAWANSHI, H.R. SHINDE AND K.V. DESHMUKH Table 5 : Problems in marketing of marigold II. Marketing Problems No. Percentage 1. Higher commission charges Delay in payment High cost of transportation Lack of skilled labour for grading of flower Loss in weight of produce shown in market Patti Lack of information of market prices done by Subramanyam (1983) on marigold and chrysanthemum. Price spread in marketing of marigold : As discussed earlier, the flower passes through different intermediaries in the journey from producer to the final consumer. The intermediaries render some services with a view to earn profit. The high margin of intermediaries is an indicator of the inefficiency in the marketing system. Such system invariably reduces the share of profit of the producer in the price paid by the consumer. The marketing cost and margins of various intermediaries involved in the marketing of marigold, were worked out and are presented in Table 4. It is revealed from the Table 4 that, producers share in consumers rupee of marigold flower was highest ( per cent) in channel-iii, followed by channel - II (90.36 %) and channel-i (85.74 %). However, the reverse was the case in gross price received by the producer. The per quintal gross price received was high (Rs /qtl.) in channel-i and was followed by channel-ii (Rs /qtl.) and channel-iii (Rs.2510/qtl.). Commission of commission agents, wholesaler and retailer in channel-i was (4.13, 3.78 and 2.17 %) and commission of wholesalers and retailers in channel-ii was (4.30 and 3.86 %) (Sayana, 1949). It is noted from the table that, 30 to 40 per cent share of consumer s rupee was galloped by the market intermediaries in the marketing of marigold flower, that is, stated hypothesis, intermediaries in marketing channel increases the marketing cost and thereby reduces producers share in consumer rupees is proved. Problems in marketing of marigold : It is observed from Table 5 that in marketing of marigold, high commission charges, delay in payment, high cost of transportation, lack of skilled labour for grading of flower, loss in weight of produce shown in the market Patti, and lack of information of market prices were the major problems expressed by 95.00, 93.00, 88.00, and and 75.00, per cent cultivators, respectively. Subramanyam (1983), Khade (2004), Ghadge and Deshmukh (2004), Rao and Reddy (2005) and Sharma (2001) have also contributed in the past some information regarding economics of production, and marketing of marigold. Conclusion : The per quintal cost of marketing of marigold was Rs , Rs and Rs in channel I, II and III, respectively in which transporting cost and commission charges were the major items of marketing cost. In price spread per quintal gross price received was highest (Rs.4112/q.) in channel I, followed by channel II (Rs.3752/q.) and channel III (Rs.2510/q.). 30 to 40 per cent share of consumer rupee was galloped by market intermediaries in the marketing of marigold. Higher transportation cost, commission charges, delay in payment, lack of skilled labour for grading of flowers, loss in weight of market of produce shown in market Patti and lack of information of market prices were the major problems reported by the growers in marketing of marigold. Authors affiliations: R.R. SURYAWANSHI AND H.R. SHINDE, Department of Agricultural Economics, College of Agriculture, Kolhapur, Mahatma Phule Krishi Vidyapeeth, RAHURI, AHMEDNAGAR (M.S.) INDIA K.V. DESHMUKH, Department of Agricultural Economics, College of Agriculture, Prabhani, Prabhani Vasantrao Naik Marathwada Krishi Vidyapeeth, PRABHANI (M.S.) INDIA LITERATURE CITED Bhalerao, J.M. and Ansari S.L. (1981). Marketing of flowers, a sample study, Indian J. Agric. Mktg., 24 (1) : Gaikwad, M.R. (1981). Marketing margins of various intermediaries in Jasmine flower in Coimbatore city. Indian J. Hort., 26(3) : Ghadge, H. L. and Deshmukh (2004). An economics of marigold based cropping system in Maharashtra. Agro-Econ. Res. J., 20(1) : Jyothi, S.H. and Raju, V.T. (2002). Study on marketing of crossandra, Jasmine androse flowers in East Godavari district of Andhra Pradesh, Indian J. Agric. Mktg., 46(2) : 2-4. Khade, P.K. (2004). Economic analysis of production and marketing of marigold in Pune district. M.Sc.(Ag.) Thesis, Mahatama Phule Krishi Vidhyapeeth, Rahuri, AHMEDNAGAR, M.S. (INDIA). 146

5 STUDY ON MARKETING OF MARIGOLD Mitra, A., Das, T.K., Sarkar, S.C. and Bhattacharya, K.K. (1989). Some aspect of tuberose marketing in Nadia District of West Bengal A case study. Indian J. Agric. Mktg., 32(2) : Rao and Reddy (2005). Screening of African marigold (Tagates erecta L) cultivars for flower yield and carotenoids. Indian J. Hort., 62(3) : Sayana, V.V. (1949). Price spread in marketing of agricultural produce; Indian J. Agric. Econ., 4(1) : t h Year of Excellence Sharma, P. (2001). Economics of production and marketing of marigold in Jaipur District of Rajasthan. Agric. Econ. Res. Rev., 14(2) : Subramanyam, K.V. (1983). Economics of production and marketing of marigold and chrysanthemum in India. Indian J. Agric. Econ., 32(2) : Suryawanshi, S.D. and Kapase, P.M (1979). Production and marketing of roses in Western Maharashtra. Indian J. Agric. Econ., 10 (4) :