Impact of maize starch extraction factory on production, processing and marketing efficiency of maize in Haveri District of North Karnataka

The present paper attempted to analyse the impact of maize starch extraction factory on marketing cost and margins under different channels of maize marketing in Haveri district of north Karnataka. A sample of 120 maize growers were selected from three taluks of Haveri district by personal interview method using pre-tested scheduled prepare for the purpose. The data were analysed and presented in tabular form computing averages and percentages. The maize starch extraction factory called “ Gujarat Ambuja Export Limited”was established during 2012 near Shiggoan taluk of Haveri district with the main objective to extract starch from maize for export purpose. Since the establishment of the factory, the area under maize increased substantially. The factory procured maize directly from the farmers and arrange for payment through online to farmers’ account within a week. This kind of arrangement of the factory not only increased area under maize in the study area but also helped the farmers to get higher price for their produce and also reduced the cost of marketing due to less transportation and packing costs, correct weighment, no commission charges to be paid by the farmers. However, among the three major maize marketing channels identified viz., Channel-I: Producer-seller à Village merchant à Wholesaler-cum-commission agent à maize processor, Channel-II: Producer-seller à Wholesaler-cum-commission agent à maize processor and Channel-III: Producer-seller à maize processor (factory)). Though Channel-III was found to be more efficient indicating higher marketing efficiency (13.10) and higher producer's share in consumer rupee (92.90%) compared to other channels but still majority of the farmers sold their produce to village merchants and traders. Based on the findings of the study, it can be concluded that channel-III which links farmers directly to the processor to fetch higher price for their produce is to be encouraged among the farming community in the study area, wherein, the role of Gujarat Ambuja Export private limited (starch extraction processing factory) is important in enhancing the income of the farmer and also reduce cost of marketing.