MARKETING CHANNEL EFFICIENCY AND FARMER SHARE IN CONSUMER RUPEE: A STUDY OF TOMATO SUPPLY CHAIN

Abstract

Efficient agricultural marketing systems are essential for ensuring equitable price distribution between producers and consumers, particularly
for perishable commodities such as tomatoes. This study investigates marketing channel efficiency and the farmer’s share in the consumer
rupee within the tomato supply chain. The research aims to evaluate the structure of prevailing marketing channels, estimate price spread, and
assess the efficiency of intermediaries involved in the distribution process.Primary data were collected from farmers, wholesalers, commission
agents, and retailers in the selected study region. The study employs price spread analysis and Shepherd’s method to measure marketing
efficiency across different channels. The findings indicate that marketing channels with fewer intermediaries exhibit higher efficiency and a
greater farmer share in the consumer rupee, whereas longer channels are characterized by increased marketing costs and intermediary margins,
reducing producer realization. The results further reveal significant inefficiencies arising from price volatility, inadequate storage
infrastructure, and information asymmetry within the supply chain.The study contributes to the existing literature by providing empirical
evidence on the relationship between channel structure and farmer income in perishable commodity markets. It recommends strengthening
direct marketing initiatives, enhancing supply chain integration, and promoting digital platforms to improve transparency and reduce
inefficiencies. These findings have important implications for policymakers and stakeholders aiming to enhance agricultural marketing
performance and farmer welfare