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Price Spreads in the Marketing of Potato in Punjab

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Indian Journal of Economics and Development
Volume 16 No. SS, 2020, 414-419
DOI: https://doi.org/10.35716/ijed/NS20-085
Indexed in Clarivate Analytics (ESCI) of WoS

Lavleen Kaur, Simarnjeet Singh and Randeep Kaur
Postgraduate Department of Agriculture, Khalsa College, Amritsar-143001
Corresponding author’s email: gurlavs@yahoo.com

ABSTRACT
The study revealed that more area was allocated to potato crop by large farmers and medium farmers for pea cultivation. The small farmers allocated more area to wheat and paddy due to price fluctuations in the potato crop and minimum support price (MSP) for the farmer. It was noticed that during the peak season there was a glut in the market and prices slumped. The results further revealed that the marketed surplus was higher in the case of a small farm as compared to medium and small farms. The former sold a major share of the production in the peak season itself due to the urgent cash requirements. There were three marketing channels prevalent in the marketing of potatoes. The producer’s share and marketing efficiency in consumer’s rupees was highest in marketing Channel-III (Producer → Consumer) with lowest price spreads. It was suggested that to increase producer’s share in consumer’s rupee the government should intervene in the marketing of potato and directly procure potato from the farm. For efficient marketing of potato modern infrastructure should be built up with the public-private partnership. The government should cover the potato under MSP after evolving suitable infrastructure.

Keywords
Marketing channels, marketing efficiency, price spread.

JEL Codes
C81, Q13, Q18.

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