Marketing Channels, Marketing Margins, Costs and Price Spreads: A Case Study of Bathinda District of Punjab

Abstract

The present study is carried out with the objective of studying the marketing channels because farmers producing agricultural produce are scattered in remote villages while consumers are in semi-urban and urban areas. This produce has to reach consumers for its final use and consumption. There are different agencies and functionaries through which produce passes and reach the consumer. Therefore, it is important to study the various functionaries involved in the marketing of cotton crop. Besides, it is important to analyze the costs associated with the services rendered by the market functionaries, marketing margins and price spreads in the marketing of cotton. Such studies are useful for both the producers/sellers and the buyers/consumers because the former are interested in getting the highest price for their produce while the latter are interested in paying as low a price as possible. The present research paper provides some guidelines to the policy makers about the need of efficient marketing system.