A Study on the Market Practices of Mettupalayam

ABSTRACT

A STUDY ON THE MARKET PRACTICES OF METTUPALAYAM

WHOLESALE VEGETABLE MARKET AND MARKETING CHANNELS OF MAJOR VEGETABLES FROM OOTY

Name of the student : Satish Maradani

I.D. Number : 05-608-021

Chairman : Dr.S.D.Sivakumar, Ph.D. Professor,

Department of Agricultural and Rural Management,

Tamil Nadu Agricultural University,

Coimbatore – 641 003

The study was undertaken with the overall objective to analyse the marketing of major vegetables from Ooty so as to facilitate procurement systems to meet the requirements of the Spencer’s retail stores in Tamil Nadu. In this context this study was undertaken with the specific objectives of the study are:

i. to examine the farmers and traders marketing practices for major vegetables in Ooty,

ii. to identify the marketing channels for major vegetables from Ooty and

iii. to analyze the arrivals and prices of potato in Mettupalayam wholesale vegetable market.

Ooty taluk was selected for the study in Nilgiris district as it occupied the major area in the production of major vegetables like potato, cabbage and carrot. The list of villages with area under potato, cabbage and carrot cultivation in Ooty taluk was collected and nine villages were selected randomly from the Ooty taluk. From each village ten farmers who were growing any of the three major vegetables (potato, cabbage and carrot) were selected at random. Thus, altogether 10 farmers from each of the village constituted a sample of 90 farmers. To trace the marketing practices, marketing channels, role of intermediaries and estimate the price spread, 10 wholesalers and 10 Commission agents were selected at random from the Mettupalayam wholesale vegetable market. Thus, the total sample included 90 farmers, 10 wholesalers and 10 Commission agents.

Agriculture was the only livelihood of farmers. Majority of sample farms were small and marginal farms. 50 per cent of the commission agents and wholesalers were dealing with all the three major vegetables. The average number of labour required per acre for harvesting, cleaning, grading and packing operations for potato, cabbage and carrot was 35, 25 and 25 respectively.

Potato, cabbage and carrot were graded based on size and spoilage of the produce. The transportation cost for one bag of potato, cabbage and carrot ranged between Rs 25 - 35 approximately in Ooty – Connoor – Mettupalayam road and it ranged between Rs 35 - 45 per bag in Kothagiri road. The extent of wastage per acre during rainy season for potato, cabbage and carrot was around fifty per cent of the marketed surplus.

The commission charged for potato, cabbage and carrot were six per cent, 10 per cent and 10 per cent respectively. The major season for the arrivals of potatoes were during August-December from Ooty, July-August from Hassan, January-March from Kolar and Indore. Cabbage arrived from Ooty, Kothagiri during June-December and from Hassan during January-April. Carrot arrived mostly from Ooty and Kothagiri during January-May. The share of production that was sold by farmers in Mettupalayam wholesale vegetable market was around 90 per cent. Eighty per cent of wholesalers arrived at the market from different places of Kerala like Palakkad, Trichur, Cochin, Ernakulam and Trivandrum. The result of the probit analysis revealed that, three factors viz, age, farm size and farmers cultivating carrot had significant influence in the preference for contract farming by farmers.

There are five marketing channels existing for marketing of potato (I to V) and three marketing channels for cabbage and carrot (II, IV and V) in Ooty taluk. Eighty per cent of the potato moved from Ooty to Kerala through marketing channels III and IV. The major procurement channels for Spencer’s were channels I and II. About ten per cent of the produce moved to various markets in Tamil Nadu .

Channel I: Farmer – NCMS - Primary wholesaler - Retailer- Consumer,

Channel II: Farmer- Commission agent - Primary wholesaler-Retailer- Consumer.

Channel III: Farmer – NCMS - Primary wholesaler - Secondary wholesaler -

Retailer- Consumer.