Marketing of lac and constraints involved: Evidence from Ranchi district in Jharkhand

The study based on the structured interview was carried out to examine the marketing costs and price spread in marketing of lac in Ranchi district of Jharkhand state. The data on marketing costs, margins and constraints has been obtained from 110 respondents comprising of lac growers, market functionaries and processors. The lac grower received 165.60 per kg which sums up to 89.11 percent share in consumers' price. The village merchant's (paikar) margin was 350 per quintal (1.88 % of consumers' price) and incurred 189 per quintal on marketing cost (1.01% of the consumers' price). The total marketing cost paid by the wholesaler was 676 per quintal (3.63% of the consumers' price), while he received a marketing margin of 807 per quintal (4.34 % of consumers' price). Garret ranking method was used for analyzing the constraints faced by the stakeholders during production and marketing of lac. The major constraints involved in the production of lac were shortage of broodlac, dearth of capital, damage due to biotic and abiotic factors. Fluctuating prices, lack of market information and lack of support services in the market were the major marketing constraints. The study revealed that there is tremendous scope for increasing the profitability of the farmers. Minimum support price introduced for lac is an appreciative step taken by government. As private players are mostly involved in the channels, regulated market channels can be a great initiative in this direction for improving the grower's welfare.