Indian Journal of Agricultural Marketing
Year : 2014, Volume : 28, Issue : 3
First page : ( 88) Last page : ( 89)
Print ISSN : 0971-8664. Online ISSN : 2456-8716.

Comparative economics of organised and unorganised retailing-A case study of palamudhir nilayam for cabbage in Coimbatore city

Suresh G., Banumathy V.

Department of Agricultural Economics, Annamalai University

Online published on 23 October, 2017.

Summary

Organized retailing refers to trading activities by licensed retailers. Organized retail includes corporate backed retail chains and also privately owned large retail business. The present study was conducted to analyse the benefits of organized retailing in Coimbatore city. Among 15 retail outlets of Palamudhir Nilayam in Coimbatore city, one retail unit was selected randomly. To compare the marketing cost, margin and efficiency of organized and unorganized retail outlets, one local vegetable market which is nearer to selected Palamudhir Nilayam was identified. From this vegetable market, commission agent cum wholesalers, retailers and the farmers supplying vegetables to vegetable market and organised retailer were selected randomly. The required data were collected from selected sample units and analysed using appropriate tools to draw meaningful conclusions. Two marketing systems were identified. In the unorganized marketing system, the marketing cost of producers was 16 percent of the consumer's price of the cabbage. Major portion of the marketing cost of producer was commission charges which accounted for four percent. The producers who are selling cabbage through unorganized system incurred Rs.0.50/kg more than the farmers selling produce through organized system. In unorganized retailing, the retailers (14 percent) were more benefited than wholesalers(13.34percent). But organised retailer gained Rs.0.30/kg more than unorganised retailer. In organized retailing, nearly 49 percent of the consumer's rupee was gained by the producer.

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