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Price Spread and Marketing Efficiency in the Marketing of Broilers in Ludhiana District of Punjab


Satvir Singh and Parminder Kaur



Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 1a
First page : ( 117) Last page : ( 122)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00043.3

Price Spread and Marketing Efficiency in the Marketing of Broilers in Ludhiana District of Punjab

Singh Satvir, Kaur Parminder*
Department of Economics & Sociology, Punjab Agricultural University, Ludhiana-141 004, India

*Corresponding author’s email:

JEL Codes Q12, Q13, Q15, Q17

Online published on 26 April, 2016.

The present study was conducted to examine the production and disposal pattern of broilers in Ludhiana district of Punjab, to estimate the marketing costs, margins and efficiency of different broiler marketing channels in the study area and to analyze the various problems associated with the marketing of broilers. The study brought out that the major marketing channels identified in the marketing of broilers in the study area were: Channel-I (Producer-Wholesaler-Retailer-Consumer) and Channel-II (Producer-Retailer-Consumer). The results revealed that, on an average, 58.33 per cent of the broiler farmers marketed their broilers exclusively through the wholesalers, whereas only 18.33 per cent farmers sold their broilers exclusively to the retailers and 23.33 per cent farmers sold their broilers both to the wholesalers as well as retailers. The retailers purchased only 12 per cent of the total marketable surplus of broilers directly from the farmers. The proportion of broilers sold by the farmers directly to the wholesalers was 88 per cent of the total produce sold. The producer’s share in consumer’s rupee in channel-I was found to be 74.38 per cent while the total price spread was 25.61 percent. In marketing channel-Il, the net share received by the producer was 80.60 per cent of the consumer’s rupee. Further, the marketing costs and margins in this channel were found to be 13.20 percent and 6.20 percent respectively.. Hence, total price spread wasl9.40 percent. The marketing efficiency in Channel-II (Produce-Retailer-Consumer) was found to be higher (4.16) as compared to Channel-I (Producer-Wholesaler-Retailer-Consumer) which was estimated to be 2.90. Since only one intermediary was involved in Channel-II where the producer farmer sold the broilers to the retailers, the marketing expenses were lower and hence the marketing efficiency was higher. Lack of regulated markets, Delay in payments and payments made in fractions, lack of producer associations and no appropriate price information were some of the problems faced by the broiler farmers. The broiler market is dominated by wholesalers, thus the farmers can be saved from exploitation by encouraging the group marketing, co-operative marketing, contract farming etc.

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