Analysis of paddy marketing channels: Evidence from West Bengal

In a developing nation like India, farmers’ access to a consistent and effective marketing channel is necessary for a sustainable food supply and the alleviation of poverty. This is an in-depth study that aims to examine the predicament of paddy marketing in Keshpur Block in the West Midnapur district of West Bengal. This study has taken into consideration various aspects, such as marketing channels, market mechanisms, marketable surplus, and farmers’ income. Furthermore, the study intends to investigate the challenges associated with paddy marketing. In this descriptive study, both primary and secondary data were collected through interviews with farmers and different market functionaries. A total of 598 respondents were selected for the study using a multistage sampling method. The findings of this study indicate that there are mainly four marketing functionaries i.e., village merchants, Dalal, Arhatia, and government agencies operating in the region. The village merchants and Dalals are the most popular paddy marketing functionaries. However, the farmers’ gross margin from selling their produce is the highest in government procurement. But they must pay a variety of expenses to transfer the paddy to the procurement centre which drastically reduces the profit. As a remedy to the malady, the government should prepare an action plan to eliminate the information asymmetry and prevent the participation of any outside agencies in the procurement process. Additionally, the provision of jute bags, reimbursement for transportation costs, and a simple process for granting permission will have a big impact on the farmers’ net profit.