Chief EditorYashpal Singh Malik
Print ISSN 0303-3821
Online ISSN 0976-4631
NAAS Rating 3.07
Full Research Article
Marketing Pattern Analysis of the King Chilli Cultivation in Peren District of Nagaland
- Email email@example.com
First Online 05-07-2023|
Methods: The present research investigation for data collection works was carried out during the agricultural year 2019 to 2021 with a total of 60 King chilli respondents; selected by following a multi-stage stratified simple random sampling technique to known about the factors responsible for the production.
Result: Study reveals the overall benefit-cost ratio over total cost on the sample farm was 3.27: 1. Total four marketing channel were identified and the marketing efficiency by Acharya’s method was higher (0.13) on channel A.
King chilli is used in bulk quantities both in fresh as well as dried forms. King chilli in Nagaland is grown commercially for its fruits and constitutes the principal source of dry chillies for marketing. Chilli is an indispensible condiment and used in the diet of every Naga household in one or the other form. For a decade Naga people have been eating chilli. It fruits forms an essential ingredient of the Naga kitchen cuisine. It is also used for a medicinal purpose, fresh and dried chillies are used for ingredients and pickle, it is also used for extraction of oleoresin and capsaicin (Anonlogous 2018b). For the present study mainly two specific objectives were fame to conduct the research viz; i). to identify the marketing channel and estimates the marketing margin, marketing cost and price spread of King chilli and ii). to suggest appropriate policy framework for expansion of area and enhancement of yield.
o Even for the King chilli Geographical Indication (GI) has been registered by the Nagaland State Government to be a hottest chilli in the world in 2006 with 1,001,304 Scoville heat units (SHU) (Anonlogous, 2021).
o The King chilli cultivation is very popular in the Nagaland state with different varieties, pungency, size, shape and colours and its usage (Sharma, 2014).
o King chilli is also used for a medicinal purpose, fresh and dried chillies are used for ingredients and pickle; it is also used for extraction of oleoresin and capsaicin (Kedrishi, 2018).
MATERIALS AND METHODS
Marketing channels of king chilli
The Marketing channels of King chilli were identified based on the intermediaries / middleman involved from the point of production to the point of ultimate consumer.
Marketing cost, margins and price spreads
Marketing cost was calculated by estimating the cost incurred in the process of marketing of King chilli. The cost incurred after harvesting of the crops till it reaches the final consumer hand generally constitutes the marketing cost. It include transportation cost, handling cost, storage cost, market fees, weighing charges and labour charges for packaging, loading and unloading. The marketing cost at various stage of King chilli marketing was calculated and finally the total cost was computed.
Absolute marketing margin of its intermediaries at any stages of marketing was calculated as follows:
MM1 = SP1 - (PP1+ MC1)
MM1 = Marketing margin of the ith middlemen.
SP1 = Selling price of the ith middlemen.
PP1 = Purchase price of the ith middlemen.
MC1 = Marketing cost incurred by the ith middlemen.
After the calculation of the marketing margin at different stages, finally the total marketing margins were calculated.
Price spread is the difference between the price paid by the consumer and the price received by the producer. It may consist of marketing costs and margin; the price spread analysis was carried out as follows:
Similarly, the share of the total marketing cost and the total marketing margin were also estimated to analyse the price spread.
The efficiency of various identified marketing channels was calculated through the Shepherd’s formula. The formula is given below:
ME = Index of marketing efficiency.
V = Value of goods sold (Consumer’s price).
I = Total marketing cost.
The present research study was conducted in Peren district of Nagaland during the agricultural year of 2019 to 2021 (two years).
RESULTS AND DISCUSSION
Agriculture commodities or goods are produced by different producers or cultivators and the produce is consume by people throughout the country at different places, basically the marketing channel is the people, organisation and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products and services get to the end user, the consumer and are also known as distribution channel. The length of channel differs from commodity to commodity and also depends on the quantity to be moved, the nature and degree of specialization in production similar study in the line with Sharma (2013).
At present study, four marketing channels of King chilli in Peren district were identified and different marketing channels for King chilli observed in the study area:
i. Marketing channel A: Producers-Consumer.
ii. Marketing channel B: Producers-Wholesalers-Retailer- Consumer.
iii. Marketing Channel C: Producer-Retailer-Consumer.
iv. Marketing Channel D: Producer-Commission agent- Wholesaler-Retailer-Consumer.
In the above mentioned marketing channels, Channel C is the most commonly used for the marketing channel so according to it, the channel C is the most efficient, because the producer cannot sell in bulk quantity so the retailer have to come and purchase from the producer.
Table 2 reveals the highest net price received by the farmer is at channel A, after which the net price is received by channel B, channel C and channel D respectively, the market cost price is highest in channel D. The net margin of intermediaries is zero for channel A and channel B and channel D scores the highest. So, the consumer price is highest for channel D and lowest for the channel A as shown in the above measurement of marketing efficiency table, for the farmers channel A is to be much preferred because the net price received for farmer is at channel A. But the channel A cannot be feasible for bulk selling due to its direct sell to the consumers and also due to that the farmer cannot devote his full time for marketing as the farmer has to do its field work (Sharma, 2016).
Even for channel B and channel C since the farmers is getting the same price so they can go for selling in any way and in channel D marketing cost and marketing margin is highest due to the fact that the produce is transferred to Dimapur and Kohima for selling.
Table 3 revealed the marketing efficiency refers to the degree to which stock price and other securities prices reflect all available, relevant information. Investors who agree with this statement tend to buy index funds that track overall market performance and are proponents of passive portfolio management. The estimates of marketing efficiency by using Conventional method (CE), Shepherd’s methods (ME) and Acharya’s method (MME). As shown in the table that the marketing efficiency was higher in channel B (5) in the conventional methods as compared to other channels i.e; A (1), C (3.33) and D (2.4) and same in shepherd’s method the marketing efficiency was higher in channel B (17.5) as compared to channels A (10), C (11.66) and D (5.71). While, in Acharya’s method the marketing efficiency was higher in channel A (0.13) as compared to other channels B (0.04), C (0.04) and D (0.02), due to the fact that there was no intermediaries involved in the channels. The price spread analysis of various marketing channel in king chilli. The table represent that then producer share in consumer rupee was higher in channel A (90) as compared to channel B (71.42), C (71.42) and D (62.5). (Sharma, 2015).
- Anonlogous. (2018a). Organic Package and Practice of Naga King Chilli (Capsicum chinense Jacq). Folder Developed by Dr. Anamika Sharma, Principal Scientist and Head, Krishi Vigyan Kendra, ICAR for NEH Region, Jharnapani, District: Chumoukedima. Access on 27th January 2018.
- Anonlogous. (2018b). Organic Package and Practice of Naga King Chilli 2014-15. Folder Developed by KVK Lohit, ICAR for NEH Region, KVK, Namgiri district. Access on 31st March 2018.
- Anonlogous. (2021). Statistical Handbook of Nagaland. Directorate of Economics and Statistics. Government of Nagaland, Kohima, Nagaland.
- Kedrishi, N. (2018). Study on the Production Pattern and Marketing of King chilli cultivation in Nagaland with special reference to Peren district. A M. Sc. (Ag.) (unpublished) thesis submitted to the Department of Agricultural Economics, Nagaland University, SASRD, Medziphema Campus, Nagaland.
All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.