Value Chain Analysis of Coconut in Orissa

Coconut crop forms an important constituent of food basket of the people of Orissa and meets the economic needs of people dependent on its marketing. The study conducted in five coastal districts of Orissa, namely, Puri, Cuttack, Khurda, Ganjam, and Jagatsinghpur has examined the market chains for coconut to find the flow of product from farmers through different intermediaries to the consumers. Prices and market margins have been computed at the different stages of the chain in order to reflect the value addition through various participants of the chain. Marketing channels have been found to be well established in the state, particularly in the coastal areas. No major value addition is done by the players at any level. The existence of functional channels explains that production and marketing system of coconut in the state can manage both increased supply and increased demand. The study has observed a high ratio of vendors v/s farmers and aggregators v/s vendors in the channel. In spite of this high ratio, both vendors and aggregators are able to earn profit and are continuing the business. It is suggested that coconut based industries should be jointly promoted by state industry department, state agriculture department and Coconut Development Board.