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Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness

Received: 6 April 2013    Accepted:     Published: 2 May 2013
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Abstract

India is the second largest producer of fruits and vegetables in the world next only to China. Horticulture de-velopment is currently constrained by poor marketing arrangements. The gap between prices received by the farmers and those paid by urban consumers is large, reflecting inefficient marketing arrangements. The huge production base offers India immense opportunities for export.This study estimates production trends, market efficiency and export competitiveness of vegetables in India and suggest measures to improve production, marketing and exports of Indian vegetables. The study was conducted India as whole for production and export competitiveness and for marketing efficiency in the 8 states of Indiacovering 20 crops. The study found that area under total vegetables cultivation is grown at the rate of 4.12% and production growth rates was 6.48%. Indian vegetables production depicted glorious past and expected promising future. The most common marketing channel for majority of the crops is that Producer-Wholesaler-Retailer-Consumer. The resultsfurther showed that the producer share in consumer rupee was highest in Punjab, Tamil Nadu and Manipur compared to Andhra Pradesh, West Bengal and Rajasthan. It varies from 46% to 74% in Andhra Pradesh, 26% to 60% in West Bengal, 33% to 60% in Rajasthan, 85% to 88% in Manipur 91% to 95% in Tamil Nadu and 100% in Punjab. The study clearly shows that majority of the horticultural commodity markets are operating efficiently. The highest marketing efficiency found to be producer to consumer channel. Hence, government policies should promote direct marketing models for efficient horticultural marketing. The results showed that in most of the commodity cases marketing cost, marketing margin, transport cost, labour charges are adversely affecting marketing efficiency and open market price, volume of the produce handled and net price received are increasing marketing efficiency.The trends of fresh vegetables show that its export quantity increased 18.3% and 22.2% during two periods respectively. The results show that Indian vegetables are huge potential for exports.The results show that for all vegetables the Nominal Protection Coefficient is lessthan 1 indicating they are competitive in the international markets. The study suggests that Indian government should give priority to vegetable production, processing and exports.

Published in American Journal of Agriculture and Forestry (Volume 1, Issue 1)
DOI 10.11648/j.ajaf.20130101.11
Page(s) 1-11
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Keywords

Indian Vegetables, Production Trends, Marketing Efficiency, Export Competitiveness

References
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[4] CII, Mckinsey Report, (1997), "The Fruit and Vegetable Opportunity, in: Food and Agriculture Integrated Develop-ment (FAID) Action Report, pp.140-152.
[5] Dastagiri M.B and Immanuelraj T.K (2012) Supermarket Supply Chains in Horticulture in India: The Novel Marketing Models, Effects and Policies. Agrotechnology 1:107, doi 10417/2168-9881
[6] Diogo, Rodrigue V.C.; Buerkert, Andreas; Schlecht, Eva (2011) "Economic benefit to gardeners and retailers from cultivating and marketing vegetables in Niamey, Nig-er"Outlook on Agriculture, Vol 40, No.1, March, pp. 71-78(8)
[7] Galanopoulos, Konstantinos; Nilsson, Fredrik O.L.; Wajnblom, Emma; Surry, Yves (2009) "Fruit and vegetable production in the new millennium: Will Mediterranean pro-duction satisfy increasing European demand? "Outlook on Agriculture, Vol. 38, No.3, Sept, pp. 235-242(8)
[8] Ganesh Kumar B. Pramanik S.C. Shakila N. (2004), "Eco-nomics of Production & Marketing of vegetables in the An-daman &Nicobar Islands" Indian Journal of Agricultural Marketing, 18:2, 16-22.
[9] Government of India (2001), Report of the Working Group on Horticulture Development for Tenth Five Year Plan (Main Report) Planning commission, New Delhi.
[10] Gupta, S. P. and N. S. Rathore, (1998), "Marketing of Vege-tables in Raipur District of Chhattisgarh State: An Economic Analysis", Indian Journal of Agriculture Economics, July-Sept, Vol. 53, No.3, p. 393.
[11] Indian Horticulture Database (2008), Ministry of Agriculture, Govt. of India, www.nhb.gov.in.
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[13] Lenné, J.M.; Ward, A.F. (2010) "Improving the efficiency of domestic vegetable marketing systems in East Africa Con-straints and opportunities", Outlook on Agriculture, Vol. 39, No. 1, March, pp. 31-40(10).
[14] Martin, Marshall A. (2001), "The future of the world food system", Outlook on Agriculture, Vol.30, No.1, March, pp. 11-19(9).
[15] Mithöfer, Dagmar; Nang'ole, Eddah; Asfaw, Solomon (2008), "Smallholder access to the export market: The case of vegetables in Kenya".Outlook on Agriculture, Vol. 37, No.3, Sept, pp. 203-211(9)
[16] National Horticulture Board (2011), National Horticulture Board Data base (http://nhb.gov.in
[17] National Horticulture Board (2008), National Horticulture Board Data base (http://nhb.gov.in
[18] Raju V,T, and Rao D.S. (1993),‘ role of Regulated Markets in the Marketing of Cultivators’ produce in Andhra Pradesh, The Bihar Journal of Agricultural Marketing, vole 1, No.4, 427-432.
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[20] Sudha M and Gajana TM (2001) ‘New Vistas in Institutio-nalizing Agricultural Marketing: Linking Production with Marketing Through Processing’, NCAP Conference Pro-ceeding on ‘Institutional Change for Greater Agricultural Technology Impact’.
[21] Sudha, M. and F. Kruijssen, (2006), "Varietal differences in the supply chain of two mango varieties in South India" Pa-per presented at the "International symposium on tropical and sub-tropical fruits", 27-30 November, Chiang Mai, Thailand.
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  • APA Style

    M. B. Dastagiri, Ramesh Chand, T. K. Immanuelraj, C. V. Hanumanthaiah, P. Paramsivam, et al. (2013). Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness. American Journal of Agriculture and Forestry, 1(1), 1-11. https://doi.org/10.11648/j.ajaf.20130101.11

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    ACS Style

    M. B. Dastagiri; Ramesh Chand; T. K. Immanuelraj; C. V. Hanumanthaiah; P. Paramsivam, et al. Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness. Am. J. Agric. For. 2013, 1(1), 1-11. doi: 10.11648/j.ajaf.20130101.11

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    AMA Style

    M. B. Dastagiri, Ramesh Chand, T. K. Immanuelraj, C. V. Hanumanthaiah, P. Paramsivam, et al. Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness. Am J Agric For. 2013;1(1):1-11. doi: 10.11648/j.ajaf.20130101.11

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  • @article{10.11648/j.ajaf.20130101.11,
      author = {M. B. Dastagiri and Ramesh Chand and T. K. Immanuelraj and C. V. Hanumanthaiah and P. Paramsivam and R. S. Sidhu and M. Sudha and Subhasis Mandal and Basantha Singh and Khem Chand and B. Ganesh Kumar},
      title = {Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness},
      journal = {American Journal of Agriculture and Forestry},
      volume = {1},
      number = {1},
      pages = {1-11},
      doi = {10.11648/j.ajaf.20130101.11},
      url = {https://doi.org/10.11648/j.ajaf.20130101.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajaf.20130101.11},
      abstract = {India is the second largest producer of fruits and vegetables in the world next only to China. Horticulture de-velopment is currently constrained by poor marketing arrangements. The gap between prices received by the farmers and those paid by urban consumers is large, reflecting inefficient marketing arrangements. The huge production base offers India immense opportunities for export.This study estimates production trends, market efficiency and export competitiveness of vegetables in India and suggest measures to improve production, marketing and exports of Indian vegetables. The study was conducted India as whole for production and export competitiveness and for marketing efficiency in the 8 states of Indiacovering 20 crops. The study found that area under total vegetables cultivation is grown at the rate of 4.12% and production growth rates was 6.48%. Indian vegetables production depicted glorious past and expected promising future. The most common marketing channel for majority of the crops is that Producer-Wholesaler-Retailer-Consumer. The resultsfurther showed that the producer share in consumer rupee was highest in Punjab, Tamil Nadu and Manipur compared to Andhra Pradesh, West Bengal and Rajasthan. It varies from 46% to 74% in Andhra Pradesh, 26% to 60% in West Bengal, 33% to 60% in Rajasthan, 85% to 88% in Manipur 91% to 95% in Tamil Nadu and 100% in Punjab. The study clearly shows that majority of the horticultural commodity markets are operating efficiently. The highest marketing efficiency found to be producer to consumer channel. Hence, government policies should promote direct marketing models for efficient horticultural marketing.  The results showed that in most of the commodity cases marketing cost, marketing margin, transport cost, labour charges are adversely affecting marketing efficiency and open market price, volume of the produce handled and net price received are increasing marketing efficiency.The trends of fresh vegetables show that its export quantity increased 18.3% and 22.2% during two periods respectively. The results show that Indian vegetables are huge potential for exports.The results show that for all vegetables the Nominal Protection Coefficient is lessthan 1 indicating they are competitive in the international markets. The study suggests that Indian government should give priority to vegetable production, processing and exports.},
     year = {2013}
    }
    

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    T1  - Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness
    AU  - M. B. Dastagiri
    AU  - Ramesh Chand
    AU  - T. K. Immanuelraj
    AU  - C. V. Hanumanthaiah
    AU  - P. Paramsivam
    AU  - R. S. Sidhu
    AU  - M. Sudha
    AU  - Subhasis Mandal
    AU  - Basantha Singh
    AU  - Khem Chand
    AU  - B. Ganesh Kumar
    Y1  - 2013/05/02
    PY  - 2013
    N1  - https://doi.org/10.11648/j.ajaf.20130101.11
    DO  - 10.11648/j.ajaf.20130101.11
    T2  - American Journal of Agriculture and Forestry
    JF  - American Journal of Agriculture and Forestry
    JO  - American Journal of Agriculture and Forestry
    SP  - 1
    EP  - 11
    PB  - Science Publishing Group
    SN  - 2330-8591
    UR  - https://doi.org/10.11648/j.ajaf.20130101.11
    AB  - India is the second largest producer of fruits and vegetables in the world next only to China. Horticulture de-velopment is currently constrained by poor marketing arrangements. The gap between prices received by the farmers and those paid by urban consumers is large, reflecting inefficient marketing arrangements. The huge production base offers India immense opportunities for export.This study estimates production trends, market efficiency and export competitiveness of vegetables in India and suggest measures to improve production, marketing and exports of Indian vegetables. The study was conducted India as whole for production and export competitiveness and for marketing efficiency in the 8 states of Indiacovering 20 crops. The study found that area under total vegetables cultivation is grown at the rate of 4.12% and production growth rates was 6.48%. Indian vegetables production depicted glorious past and expected promising future. The most common marketing channel for majority of the crops is that Producer-Wholesaler-Retailer-Consumer. The resultsfurther showed that the producer share in consumer rupee was highest in Punjab, Tamil Nadu and Manipur compared to Andhra Pradesh, West Bengal and Rajasthan. It varies from 46% to 74% in Andhra Pradesh, 26% to 60% in West Bengal, 33% to 60% in Rajasthan, 85% to 88% in Manipur 91% to 95% in Tamil Nadu and 100% in Punjab. The study clearly shows that majority of the horticultural commodity markets are operating efficiently. The highest marketing efficiency found to be producer to consumer channel. Hence, government policies should promote direct marketing models for efficient horticultural marketing.  The results showed that in most of the commodity cases marketing cost, marketing margin, transport cost, labour charges are adversely affecting marketing efficiency and open market price, volume of the produce handled and net price received are increasing marketing efficiency.The trends of fresh vegetables show that its export quantity increased 18.3% and 22.2% during two periods respectively. The results show that Indian vegetables are huge potential for exports.The results show that for all vegetables the Nominal Protection Coefficient is lessthan 1 indicating they are competitive in the international markets. The study suggests that Indian government should give priority to vegetable production, processing and exports.
    VL  - 1
    IS  - 1
    ER  - 

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Author Information
  • Principal Scientist, National Centre for Agricultural Economics and Policy Research, New Delhi, India

  • Director, National Centre for Agricultural Economics and Policy Research, New Delhi, India

  • Scientist, National Centre for Agricultural Economics and Policy Research, New Delhi, India

  • Professor, Acharya N.G. Ranga Agricultural University, Hyderabad, India

  • Professor, Tamil Nadu Agricultural University, Coimbatore, India

  • Dean, College of Agriculture Sciences, Punjab Agricultural University, Ludhiana, India

  • Principal Scientist, Indian Institute of Horticultural Research, Bangalore, India

  • Senior Scientist, Central Soil Salinity Research Institute, Regional Station, Canning Town, India

  • Principal Scientist, ICAR Research Complex for North-Eastern Hill Region, Shillong, India

  • Principal Scientist, Central Arid Zone Research Institute, Regional Station, Pali, India

  • Senior Scientist, PDADMAS, Bangalore, India

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