Potential marketing strategy to augment the revenue of small and marginal farmers: A fiscal analysis

Increasing Production and productivity in agriculture is not the prime way to nourish the small and marginal farmers income. The efficient marketing network is the key factor for monetization of the output and for recognition of better gains. In the present study, an attempt was made to calculate the cost the marketing cost, price spread and to evaluate the performance of different marketing channels and to find out the impact of price policy. Hence for the study, based on the district wise sectoral distribution, Perambalur and Ariyalur district was selected for the study. Random sampling procedures was employed in drawing up the samples for collecting primary data. In the existing marketing channel where intermediaries where more, price spread was also more resulting in low share of farmer’s price in consumer’s price. In order to increase the marketing efficiency in each channel, alternative channels were suggested, for paddy marketing efficiency of proposed channels was found to increase by 1.25 and 0.45 per cent in channel I and III respectively similarly for cotton marketing efficiency of proposed channels was found to increase by 3.10 and 0.97 per cent for channel I and channel II. Farmers adopting the proposed changes in channel received an assured addition income per quintal and also trend analysis between MSP and market price in study area revealed that MSP does not have any impact on farmers yield. Hence reducing intermediaries in the study area and adopting proposed channel would enhance the farmer’s income.