Indian Journal of Agricultural Marketing
Year : 2018, Volume : 32, Issue : 3s
First page : ( 156) Last page : ( 157)
Print ISSN : 0971-8664. Online ISSN : 2456-8716.

Economics of milk marketing and its efficiency in Kalaburagi District of Karnataka

Patil Vinayak, Reddy B. S., Patil S. S., Hiremath G. M.

Department of Agricultural Economics, College of Agriculture, University of Agricultural Sciences, Raichur-584 104, Karnataka

Online published on 15 May, 2019.

Abstract

The study was conducted in Kalaburagi district of Karnataka. Totally 60 milk producers and 30 market intermediaries were selected for the study and survey was conducted during 2016–17. The study pronounced that majority of rural and peri-urban farmers have sold milk through unorganized sector (70%) and only 30 per cent of farmers have disposed milk through organized sector. Per litre marketing cost incurred by producers in marketing of milk in rural and periurban area under channel-I was 0.25 and 1.17 respectively. Similarly, milk vendors incurred marketing cost of 3.10 and 3.75 and received a margin of 7.45 and 8.50 in rural and peri-urban dairy farms respectively. Milk vendors were dominant in the unorganized sector and have procured maximum quantity of milk. The vendor exploited the producers by paying lower price for the milk and sold deteriorated quality milk to the consumers at higher price. Producer's share in consumer rupee was high in peri-urban (76.55%) compared to rural (70.70%) dairy farms. The study also showed that the efficiency of the channel was low in which the number of intermediaries were more. There is a need to strengthen the structure of organized milk marketing system in the study area.

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Keywords

Marketing efficiency, organized and unorganized sector, Producer's share in consumer rupee, price spread.

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