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Analysing Costs and Marketing Channels in Natural Rubber Marketing in Karnataka, India

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  • Nithin, K. N.
  • Mahajanashetti, S. B.

Abstract

This study examines the costs and marketing channels involved in the trade of natural rubber in Karnataka, the third-largest rubber-producing state in India. Conducted in Dakshina Kannada and Udupi districts, the research focuses on the marketing arrangements for rubber latex and rubber sheets. The findings reveal that a significant majority (63.33%) of farmers prefer selling rubber sheets through Type-2 Rubber Producers’ Societies (RPS), which handle over 60% of the rubber production. The study highlights that transportation is the largest cost component across all channels. The study also identifies three primary marketing channels: Channel-1 (Farmer → Type-1 RPS → Manufacturers), Channel-2 (Farmer → Type-2 RPS → Marketing Co-operatives → Manufacturers), and Channel-3 (Farmer → Primary Dealer → Secondary Dealer → Manufacturers). The analysis of price spreads shows that Channel-1 provides the highest producer share in the consumer’s rupee (97.94%), followed by Channel-2 (95.72%) and Channel-3 (95.03%). The study underscores the need for optimized logistics and improved marketing efficiency.

Suggested Citation

  • Nithin, K. N. & Mahajanashetti, S. B., 2025. "Analysing Costs and Marketing Channels in Natural Rubber Marketing in Karnataka, India," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 43(2), pages 1-5.
    • Handle: RePEc:ags:ajaees:368209
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    File URL: https://ageconsearch.umn.edu/record/368209/files/Nithin4322025AJAEES130636.pdf
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    References listed on IDEAS

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    1. Anuja, A.R. & Kar, Amit & Mathur, V.C. & Jha, Girish Kumar, 2012. "Input Delivery, Processing and Marketing of Natural Rubber: The Role of Producers’ Cooperatives in Kerala," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(Conferenc).
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