Marketing Losses and Their Impact on Marketing Margins: A Case Study of Banana in Karnataka

The explicit evaluation of the post-harvest losses at different stages of marketing and their impact on farmers’ net price, marketing costs, margins and efficiency have been presented. It has been found that the existing methods tend to overstate the farmers’ net price and marketing margins of intermediaries. In fact, the margin of the retailers’ after taking into account the physical loss during retailing has been found to be negative (loss), which otherwise, was positive (profit) in the conventional estimation. Similarly, the producers’ net share and wholesalers’ margins also decrease substantially. It has been shown that marketing efficiency is inversely proportional to the marketing losses. The co-operative marketing has been found to be a more efficient system in terms of both operations and price. Marketing cost has been identified as the major constraint in the wholesale marketing channel and bringing down the costs, particularly the commission charges as demonstrated in the co-operative channel, will help in reducing the price-spread and increasing the producers’ margin. The need for specialized transport vehicles for perishable commodities has been highlighted.