Cultivation and its Marketing in District Durg of Chhattisgarh - An
Economic Analysis
THESIS
Submitted in partial fulfillment of the requirements for the award of the degree
of
TECHNOLOGY AND SCIENCES, ALLAHABAD - 211 007, U.P., INDIA
[ID. No. 15PHAEABM207]
ACKNOWLEDGEMENT
I bow down before almighty God the omnipotent, omnipresent and omniscient for showing his blessing,
mercy and strength. Without his blessings, this task would have remained a mere dream.
It is my pleasure to glance back and recall the path I travelled during the days of hard work and
perseverance. This thesis is the result of three years of rigorous work whereby I have been accompanied, supported
and guided by many people.
Although this task is the present efforts of mine, yet there are a several persons whose sincere co-
operation during the entire period of his research is worth to be mentioned. I deem it a proud privilege to get a
much long opportunity to my noble, able and considerate Advisor Prof. (Dr.) Nahar Singh Professor and Head,
Department of Agricultural Economics, Sam Higginbottom University of Agriculture Technology and Sciences,
Allahabad. His soft and sober attitude, guidance, whole-hearted encouragement, innovative suggestion,
constructive criticism and conviction of purpose led this uphill task to its successful completion and shall be a
lifelong gifted memory for me.
I greatly acknowledge the judicious impeccable and benevolent guidance, invaluable suggestion and
constant encouragement during of this work from Dr. Dinesh Kumar (Co-Advisor) Associate Professor,
Department of Agricultural Economics, Sam Higginbottom University of Agriculture Technology and Sciences,
Allahabad.
I would like to thank the chairman of my advisory committee for synopsis presentation Prof.(Dr.) J.P.
Srivastava, Department of agricultural extension, SHUATS, Allahabad. I feel no words to express my heartfelt
gratitude and respect to his kindness.
My sincere and heartfelt thanks, to Prof. (Dr.) VM Prasad, (Member) Professor, Department of
Horticulture, Sam Higginbottom University of Agriculture Technology and Sciences, Allahabad, who provided
me timely guidance and encouragement to fulfill the project and extended every possible help.
I also owe my sincere thanks to Dr. Anupriya Paul, (Member) Assistant Professor, Department of
Mathematics and Statistics, Sam Higginbottom University of Agriculture Technology and Sciences, Allahabad,
for her constructive guidance and support.
With immense pleasure and deep respect, a profound sense of gratitude and heartful thanks to to all
teachers of the Dept. of Agricultural Economics, Dr. Ashish S. Noel, Dr. Sanjay Kumar, Mr. Nitin Barker, Dr.
A.J. Stephen and Mr. Jayant Zechariah.
What is the cherished most, is the help, love, affection, encouragement and blessing to walk on the right
path which I got from my honorable, loving and caring mother Smt. Kanta Nayak , my dearest and honourable
father Dr. Ashok Kumar Nayak and my very supporting, loving and caring brother Dr. Amit Nayak and all
family members, who have prayed for me day and night, in helping me tide over those moments of anxiety and
despair and providing me extensive and continuous moral support during the study period.
I would like to thank the chairman of my advisory committee for the final viva-voce presentation Prof.
(Dr.) P. J. George, Director, CHRD, SHUATS, Allahabad for his valuable suggestions and advice. I feel no
words to express my heart full gratitude and respect for his kindness.
I can never forget the help and support of Staff of the Department of Agricultural Economics &
Agribusiness Management, SHIATS, Allahabad, especially Mr.Lalit John, Vinod, Manoj and Shiv kumar and
I express my sincere thanks to them.
Last but not the least I extend my gratitude to all the people who have helped, supported and encouraged
me in many ways for the completion of my doctoral degree programme.
Place: Allahabad
3 PROFILE OF STUDY AREA 53-68
4 MATERIALS AND METHODS 69-83
5 RESULTS AND DISCUSSIONS 84-127
6 SUMMARY AND CONCLUSION 128-139
BIBLIOGRAPHY 140-153
APPENDIX i-x
1.1 Area, production and productivity of Banana among
total fruits (India)
2014-15)
6
world
8
1.4 State wise area, production and productivity of Banana 9
1.5 Area, Production and productivity statistics of banana in
Chhattisgarh
12
3.1 Distribution of land holding in Durg district in 2010-11 55
3.2 Land use pattern in Durg district 56
3.3 Area, Production and productivity of field crops in the
Durg district
3.5 Total area and production of horticultural crops in Durg
district
60
3.6 Area and Production of Fruit crops in Durg district 61
3.7 Area and Production of Vegetable crops in Durg district 62
3.8 Area and Production of Spices crops in Durg district 63
3.9 Area and Production of Flower crops in Durg district 64
3.10 Livestock position in Durg district 65
3.11 Socio-economic indicators of Dhamdha block and Durg
district
66
4.1 District wise area and production of Banana in the
Chhattisgarh (2015-16)
70
4.2 Area and production of Banana in three blocks of Durg
district
71
categories in sampled villages.
in different size of farms group
85
different size of farm families
86
size of farm groups
growers in different size of farm groups
88
growers in different size of farm groups
88
5.7 Level of Achievement Motivation of the banana growers 91
5.8 Level of Decision Making ability of the banana growers 92
5.9 Level of Ability to coordinate of the banana growers 93
5.10 Level of Risk Taking Ability of the banana growers 94
5.11 Level of Knowledge possession of the banana growers 94
5.12 Level of Information seeking of the banana growers 96
5.13 Level of Assistance of Management services of the
banana growers
5.16 Overall Entrepreneurial Behaviour of the banana
growers
100
growers
100
5.18 Marketable surplus of Banana Per farm in different Size
of Farms Group
in different Sizes of Farm Groups
107
channel I
channel II
channel III
Channel IV
114
5.24 Price spread and Producer’s share in consumer’s rupee
under different marketing channels of Banana
116
Durg district
5.27 Post-harvest losses in banana at Wholesale market level 120
5.28 Post-harvest loss in banana at retail level 121
5.29 Constraints in Production of Banana in different Size of
Farms Group
5.30 Constraints in marketing of Banana in different Size of
Farms Group
1.1 Trend of Banana Production in India. 11
1.2 Fruit Production in Chhattisgarh 12
3.1 Map of Durg District 68
LIST OF ABBREVIATIONS
e.g. : For example
FYM : Farmyard manure
Cultivation and its Marketing in District Durg of Chhattisgarh - An
Economic Analysis
2018 Advisor
ABSTRACT
Horticulture has aroused as a major agricultural enterprise in accelerating the pace
of the economy. This study was conducted to determine the present status of postharvest
handling including loss assessment and marketing of banana and to identify the constraints
relating to postharvest management and marketing of banana and to make probable
suggestions for addressing the identified constraints. The study was conducted in Dhamdha
block of Durg district of Chhattisgarh in the year 2017. A sample of 132 banana growers
were selected for the collection of primary data and the data was collected by personal
interview method using a well-organized schedule. The results revealed that more than half
(58.33%) of the respondents belonged to medium entrepreneurial behaviour category. In
entrepreneurial qualities, majority of the banana growers were found to have medium level
of innovativeness, decision making ability, low leadership ability and knowledge
possession. Four channels were identified in Banana marketing in the Durg district viz.,
Channel-I (Producers→ Consumers), Channel II (Producers→Retailers→
Consumers),Channel-III (Producers → Wholesalers → Retailers → Consumers), Channel-
IV (Producers→ Commission agents → Wholesalers →Retailers → Consumers). Majority
of the banana growers in the study area preferred channel-III followed by channel-IV and
channel II and channel I. Producer’s share in consumer rupee was worked out to be 94.40
per cent in channel I, 51.76 per cent in channel II, 39.92 per cent in channel III and 35.84
per cent in channel IV. The price spread in this channel IV was highest (Rs. 1796.60 per
quintal) followed by Rs. 1682.40 per quintal in channel III, Rs. 1206.00 in channel II and
Rs. 112.00 per quintal in channel I. The marketing efficiency channel I was found to be
highest (16.85 %) compared to 1.07 per cent in channel II, 0.66 in channel III and 0.55 per
cent in channel IV. It was noticed that higher the number of market intermediaries in this
chain, lesser the producer’s price because of rise in marketing cost and the margins. The
assessment of post-harvest losses at three levels of marketing viz. farm level, wholesale
market level and retail level revealed that maximum loss occurred at wholesale market
level (51.00 %) followed by farm level loss (39.52%) and retailer level loss (37.95 %). It
is found that small and immature fruits was found to be the major cause of post-harvest
losses at farm level whereas the physiological weight loss due to drying of the fruit during
transportation was the major cause for the losses at the wholesale transit level and the
physically damaged fruit were the major cause at retail level. The major constraints faced
by banana growers in the marketing of Banana was found to be high fluctuations in price
followed by low prices at the time of harvest while major constraint identified in production
was destruction of crop by heavy winds followed by non-availability of improved variety
of suckers.
efficiency, Post-harvest losses.
The horticultural crops viz., fruits, vegetables, plantation crops, medicinal
crops, ornamental crops and mushrooms plays a vital part in improving health, food,
livelihood and nutrional security. It has played a vital part in the nation’s poverty
alleviation, country's nutritional security and employment generation programmes
over the years. Horticulture has aroused as a major agricultural enterprise in
accelerating the pace of the economy. This sector not only provides abundant scope
for supporting wide range of agro based industries generating ample employment
opportunities but also presents myriad options for income diversification to the
farmers. While agriculture, considered as the strength of Indian economy, with a share
of about 15 per cent to the country’s GDP and employment provider to around 58 per
cent of its total population, the horticultural sector contributes to about 30 per cent in
agricultural GDP from about 14 per cent of total area under horticultural crops and
contribution of about 40 per cent of the total agriculture export earnings besides its
share of nearly 20 per cent in total agricultural labour force. Thus, operation and
cultivation of horticultural crops continues to play a fundamental role in raising
prosperity of our nation apart from linked health and fortunes of its people (Vision
2050 IIHR, 2014). It is vividly clear that, for the 4 per cent annual growth in the
economy of Indian agriculture, the horticultural sector needs to grow at 8 per cent
annually to encounter the growing demand for food. There is a growing consciousness
about the benefits and gains of the horticultural crops which is certain to leap with the
rise in socioeconomic status of the people.
As a consequence of technology, research and policy initiatives, India
continues to be the II largest producer of fruits and vegetables with a share of about
13.6 per cent and 14 per cent to the worldwide fruits and vegetables production
respectively. Due to its significant share in the worldwide horticultural production,
India is very well recognized as fruits and vegetable basket of the world. India’s
varied climatic and physic-geographical conditions ensures availability of all kinds of
INTRODUCTION 2
horticultural crops such as fresh fruits and vegetables, spices, nuts, flowers and
plantation crops (cocoa, cashew nut and coconut). As per the NHB database (2016-
17) India produced about 92.8 million tons of fruits and 175 million tons of
vegetables with 6.40 million hectares and 10.30 million hectares land under fruits and
vegetables cultivation, respectively. India is the largest producer of mango (45%),
bananas (29%), papaya (37%), pomegranate, sapota and acid lime beside recording
highest productivity in grapes (21.6 t/ha) in the world (Anonymous, 2015). The vast
production base offers India tremendous opportunities for export. Export of fruits
from India during FY 2015-16 was pegged at Rs. 3,524.50 crores and export of
vegetables was of 4,866.91 crores. Bananas, Mangoes, pomegranates, grapes and
walnuts accounted for major share of fruits export while Potatoes, green chillies, okra,
bitter gourd and onions were major vegetables exported from India. Bangladesh,
Nepal, Sri Lanka, UAE, Qatar, Malaysia and UK remained the top destination
countries for the Indian fruit and vegetables (APEDA, 2017). Though, the
contribution of India in global market is nearly about 1 per cent but this is certain to
go up with the growing acceptance of India’s horticulture produce in the world.
Mango and banana accounted for around 55 per cent of total fruit production among
fruits in both the consecutive years (2013-14 and 2014-15) with alone 33 per cent of
banana production. Among vegetable crops, major share in production was occupied
by potato (26 %), Tomato and onion (8 %) and brinjal (8 %) in the year 2014-15. The
state wise production of fruit crops in India states that Maharashtra has the major (12
%) share followed by U.P. (10 %) while Telangana, Karnataka, Tamil Nadu, MP and
Gujarat each contributed 5 per cent in total fruit production in the country during
2014-15 and these 8 states accounted for around 70 per cent of the total area under
cultivation of fruits (MOSPI, Annual Report 2016).
Though, India ranks second in the global fruit production scenario, there are
numerous challenges encountered in the production and marketing of horticultural
crops. Amongst which, the first and the foremost challenge is its lesser productivity in
comparison to developed countries like U.S.A and Brazil. The productivity of India in
the case of fruits and vegetables (14.33 & 17.01 tons per hectare respectively) is about
half the productivity of U.S.A. which is 23.3 and 32.5 tons per hectare. Second major
challenge is that the Indian horticulture sector is described by its small and scattered
INTRODUCTION 3
farms having low yield per hectare coupled with enormous post-harvest losses, on
account of outdated cultivation and post-harvest management practices. It is evident
by the findings of the study by YES bank that the countries in North America and
Europe stored 85 per cent of their horticultural produce in temperature-controlled
conditions whereas India has only 2 per cent of its horticulture produce stored in
temperature-controlled conditions. In India, 30-40 per cent of the horticultural
produce is wasted prior to consumption because of inadequate cold storage facilities
which is presently available for just 10 per cent of the annual horticultural production.
In addition to that, the biggest wastage occurs during the transportation of horticulture
products from the farm gate to consumer as a horticulture product have to pass
through seven different distribution channels within which there was a loss of 5-7 per
cent in each step, as per the report by National Centre for Cold Chain Development.
There are huge processing losses that also poses a considerable challenge. The present
status of processing in India is still around 4.6 per cent of the total produce, in
comparison to China (30 %), U.S.A. (65%) and Philippines (78 %). (Halde, 2014).
Further, the Indian food processing industry is dominated by small and medium
enterprises, which lacks the required capacity to assume large-scale fruits and
vegetables processing.
The above challenges in the Indian horticultural sector are further aggravated
are by the acute lack of market infrastructure, which are not that well developed in
the fruits and vegetables markets as it is developed for food grain markets. Lack of
generalized infrastructure such as ripening chambers, cool chains refer vans and cold
storages, etc. coupled with existence of large number of unorganized middleman leads
to inefficient and unorganized supply chain practices. This further results in colossal
post-harvest wastages of nearly thirty per cent in addition to the less remuneration to
the farmers. In particular Banana crop, the Post-harvest losses causes around 20-80
per cent of the total production (Kumar et. al. 2006). However, the persistent
challenge is doubling the present production of fruits and vegetables to around 500
million tons by 2050 from present 295.2 million tonnes (2016-17) in order to
encounter the rising demand for horticultural crops due to enhanced purchasing
power, rapid urbanization, changing life style and food habits, awareness about health
benefits etc. The per capita availability of vegetables and fruits, though improved over
INTRODUCTION 4
the years, is still below the recommended levels and hence, the nutritional and health
security can be achieved only by enhanced productivity. In this context, it is
imperative to evolve innovative technologies for enhancing productivity in
horticultural crops through intensive efforts in research, development and extension
activities. The present challenges in the horticultural sector can be well met by
integrating the Indian food supply chain with the global retail chains by bringing
Foreign Direct Investment in Indian retail industry which can mitigate some of these
problems. The consequent entry of international retail chains would further strengthen
the much needed processing facilities with storage capabilities thereby curtailing
wastages in the supply chain and aiding the farmers and the consumers through a
more systematic and coordinated approach besides bringing economy of scale in
operations.
1.2 IMPORTANCE OF BANANA IN THE INDIAN ECONOMY
Banana (Musa paradisica L.) is an essential horticultural crop. In respect to
area and production, its share is recognizable in horticulture sector. Banana comes
under the family Musaceae. It is placed in fifth position in the world’s agricultural
commodity trade after and cocoa, coffee, sugar and cereals. It is also considered as the
fourth major fruit crop in terms of economic value after rice, wheat and milk. It is
very delicious, highly nutritious and also an opulent and cheapest source of energy
(104 calories/100gram). Southeast Asia is the likely origin of Banana. The advantage
of this fruit is its availability round the year. Table 1.1 shows the per centage share of
banana with regard to area, production and productivity of the total fruits cultivated in
India. Area under banana cultivation in proportion to total area under fruits increased
from 11.62 to 13.49 per cent in the period 2001-02 and 2016-17 respectively. The
proportion of the production of banana with regard to the country’s total fruits
production consistently increased from 18.12 to 32.79 per cent during the similar
period (Table 1.1). The per centage increase in production is explained by the per
centage increase in productivity rather than in area. Yield of banana increased
continuously throughout the period from 16.72 to 35.43 tons per hectare, whereas,
yield of all fruits revolved around 14.57 per cent as shown in table 1.1.
INTRODUCTION 5
Table 1.1: Area, Production and Productivity of Banana among total fruits
(India)
(Tonnes/ha)
2001-02 4010 466
14.57 35.43
Notes: Figures in the brackets represent per centage to total under all fruits.
Source: NHB Database, 2016-17
The growth in export quantity and value of Banana export is presented in
Table 1.2. It could be seen from the table 1.2 that, for the overall period of fifteen
years (2001-02 to 2016-17), 19.14 per cent and 23.77 per cent of growth was achieved
in banana export quantity and value, respectively. According to the export statistics
confirmed by APEDA, total Banana export in 2016-17 was about 110871.87 tonnes
INTRODUCTION 6
with the total export value of 38,852 lakhs in rupees as against 8.009 tons and Rs.
1583.94 lakhs in 2001-02 respectively (Table 1.2).
Table 1.2: India’s Performance in Export of Banana (2001-02 to 2016-17)
Year Quantity Exported
Source: APEDA and National Horticulture Database, (NHB, 2017).
There was a sharp increase in value of exports in 2009-10 (Rs. 13025.47
lakhs) and continued to increase with certain fluctuation over the period. This increase
in export quantity accompanied by the growth in value has led to an upsurge in the
share of banana exported to total production which increased from 0.06 per cent to
0.22 per cent during the period 2001-02 to 2014-15. The major export destinations of
Indian Banana are Nepal, UAE, Iran, Oman, Kuwait, Saudi Arab, Bahrain, Qatar and
Maldives (Nayak and Singh, 2018). India in spite of its higher production of Banana,
does not have much export volume due to huge domestic demand. Besides this, there
INTRODUCTION 7
are several supply limitations coupled with high post-harvest losses which reduces the
quantity of actual produce available. India is exporting banana to 43 countries across
the world and its proportion to total export is much negligible as banana is regarded as
a vital component of fruits consumption in national markets (Verma and Singh,
2004).
1.3 NUTRITIVE AND SOCIO ECONOMIC VALUE OF BANANA
Banana is one of the primitive fruit known to mankind and an important
commercial tropical fruits traded globally. The term ‘Banana’ is derived from the
Arabic word 'banan', which means finger. The origin of Banana (Musa sp.) is South
East Asia. Banana is a valuable crop taken widely in the tropical and sub-tropical
regions of India. It has also got great social, economic and religious importance in the
Indian society. Owing to its varied uses and high economic gains, Banana has been
referred as “Kalpatharu” (a plant of virtues) from 2500 B.C. Banana is a very
widespread fruit due to its less price and high nutritious value. Banana is utilized in a
several forms viz. feed, food, fuel, medicine and distinct applications. It is consumed
both in fresh and cooked form both as ripe and raw fruit. Processed banana products
such as jam, juice, jelly, chips, wine, banana puree and halwa can be prepared from
the fruit. The soft stem of banana plant, which carries the inflorescence is extracted by
separating the leaf are rich source of starch and have a similar chemical composition
to that of potato. The pseudo stem of banana plant is chopped and taken as vegetable
and cattle feed. The fibre extracted from Banana is used to make handy items like
pots, bags and wall hangers. Fine quality paper and ropes can also be prepared from
banana waste. The leaves of Banana are considered to be hygienic and healthy eating
plates in many south Indian states. Banana has a worldwide demand as a food
ingredient due to its highly nutritive food elements which are healthy to eat and easy
to digest. Banana fruits are the major source of energy-producing carbohydrates,
potassium, vitamin B6 and B group vitamins, vitamin C, dietary fibre and
antioxidants and minerals such as calcium, potassium, magnesium, sodium and
phosphorus. Bananas have no fat, cholesterol or salt and therefore make an excellent
food, rich in nutritional substances and ideal as a snack for both children and adults.
The nutritional value per 100 gms of banana fruit contains 104 kcal of energy, 24.84
gms carbohydrates, among the vitamins, folates is highest with 20 mcg and among
INTRODUCTION 8
minerals it contains 5 MG of calcium. Banana powder is used as the first baby food. It
assists in reducing the risk of heart related diseases when used repeatedly and is
recommended for patients suffering from kidney disorders, gastroenteritis, ulcer,
arthritis and high blood pressure. Hence, banana had been denoted as a protective
food as it assumes great importance for providing nutritional security for the people
1.4 BANANA PRODUCTION IN THE WORLD
At the world level, banana is stated to be grown in 130 countries. The total
area and production of Banana at the world level was accounted as 5 million ha and
113.36 million tonnes respectively in the year 2016. India positions first in regard to
area and production contributing about 26.87 per cent of the world’s production.
Besides India, other main banana producing countries are China, Philippines, Ecuador
and Brazil having percentage share of 11.64, 9.45, 8.24 and 7.65 per cent respectively,
in production of banana.
Country
Production
INTRODUCTION 9
1.5 NATIONAL SCENARIO OF BANANA PRODUCTION
Banana is the majorly produced and highly consumed fruit crop cultivated in
India. It occupies about 860 thousand ha. (13 %) of area under cultivation and
production of 30,447 Thousand MT. (32.49 %) (NHB, 2016). India is the world’s
largest producer of banana, contributing around 15 per cent of the total banana area
and around 27 per cent of the total banana production in the world (FAO, 2016). In
India, Gujarat state has the maximum productivity of 64.70 MT /ha. as against
national average productivity of 26.01 Mt/ha. The six important states of Banana
production in India are Tamil Nadu (14.87 per cent) followed by Gujarat (14.37 %),
Andhra Pradesh (12.26 %), Uttar Pradesh (10.51 %), Maharashtra (10.38 %) and
Karnataka (8.14 %). (Table 1.4). These six states contributes more than 50 per cent of
total production of banana in the country and covers 38.33 per cent of the total area
under fruit cultivation in the country. Banana production in India is rapidly increasing
year by year and it has doubled from 14209.9 thousand MT to 29163 thousand MT
during the period 2001-02 and 2016-17 (Fig 1). However the current production of
Banana in India is highly inadequate and thus provides an enormous scope of raising
production of banana in the country. (Gowri and Shanmugam, 2014). India
capitalizes the opportunity in raising the production and yield of banana which can be
enhanced with scientific production technique as stated by Jaffar and Namasivayam
(2004).
Table 1.4: State wise statistics on area, production and productivity of Banana
(2015-16)
(MT/Ha)
Source: NHB Database (2015)
Note: Figures in the parenthesis denotes the percentage of the total.
INTRODUCTION 11
Source: NHB Database, 2016
1.6 BANANA PRODUCTION IN CHHATTISGARH
In Chhattisgarh, fruits occupy 236.374 thousand hectare of area and fruits
production in the state is 2316.728 thousand metric tons. Fruit production in
Chhattisgarh contributes 25.27 per cent of total horticultural crops. Among fruits,
Banana plays an important role in Chhattisgarh with largest share of 26.64 per cent of
the total fruit production in the state. According to NHB database, 2016, the total area
of banana cultivation was 25445 ha and production of Banana in the state was 617286
MT. Banana production in the state has grown at a compound growth rate of 37.40
per cent while area increased at the rate of 22.8 per cent during the period 2004-05 to
2015-16 (Table 1.5). In context of cultivated area in Chhattisgarh, Mango is having
highest area among the fruit crops followed by papaya, guava and jackfruit while in
terms of fruit production, Banana occupies first position in Chhattisgarh state
followed by Mango, Papaya, Guava and Jack fruit as shown in Figure 2. Banana is
being cultivated in every district of Chhattisgarh state. The major Banana growing
district Raigarh, Raipur, Bilaspur, Durg, Mahasamund. Raigarh district accounts for
highest banana production in the state with 76510 metric tons production followed by
Durg and Raipur district with 51938 and 51585 Metric tonnes respectively. With
regard to area under Banana cultivation, Bilaspur district ranks first with 2450 ha
0
5000
10000
15000
20000
25000
30000
142091330413856
INTRODUCTION 12
followed by Raipur (2200 Ha.) and Durg district (1940 Ha.). (CG Horticulture
Department).
Source: Indian Horticulture Database -2016.
Table 1.5: Area, Production and productivity statistics of banana in
Chhattisgarh
(Mt./ha)
25445 69848
Production in Metric Ton and area in Hectare
Area Production
INTRODUCTION 13
1.7 MARKETING SCENARIO OF BANANA IN CHHATTISGARH
Marketing of horticultural produce poses a severe challenge due to the explicit
nature of crop itself. Because of its high perishability, seasonability and bulkiness,
these crops needs extraordinary consideration in providing time, place and form
utilities which adds to the overall marketing cost. The marketing of the horticultural
crop consist of all the activities, agencies and functions involved in movement of the
produce from the place of production to the place of consumption. The marketing
process involve not only the primary functions of selling and buying but also the
preparing the produce for marketing which includes assembling, packaging,
transportation, grading, storage, processing, retailing etc. The number and intensity of
functions vary from crop to crop. On the other hand, the absence of a proper
marketing plan and organizational arrangements, agro processing facilities, which
otherwise have high potential for indigenous production is a cause of great concern
and is a disincentive to the local growers. Efficient marketing system plays a critical
role in getting the remunerative prices to the producers. It also contributes to optimum
utilization of resources, increase in farm income, output management, and
employment generation and value addition. In the existing scenario, it is observed that
the producers do not pay required consideration to the various components of
marketing. The producers usually spend the entire year on producing the crop and
ends up selling the produce to the pre-harvest contractors that results in low returns
due to less share in consumer’s rupee.
The marketing of banana is commonly carried out through the following marketing
channels:
Consumers.
Consumers
Banana Growers tends to sell the produce at the farm gate itself due to the
high degree of perishability in Banana. But, it would be better if the produce be sold
in the markets having better accessibility, provided efficient transport and
communication facilities. It is seen that banana growers sell to post harvest
contractors at the farm level because of high risk of spoilage of fruits during
transportation and post-harvest handling methods, no assurance of higher prices in
markets, delay in getting payment of produce by the commission agents in the market,
pressing need of money for immediate payments, higher transportation cost, and lack
of the adequate market information. Banana is also sold to the commission
agents/wholesalers in the secondary mandi or market yards or the produce is directly
sold to the retailers and the exporters. The reasons for sale of produce to the
commission agents/wholesalers in the market premises are because of higher net
prices expected in the markets, in absence of contract been settled with pre-harvest
contractors, because of no other alternative except to sell in the market or because of
small quantities of the produce. Though, there are several problems being faced by the
producer growers to sell the fruits in the market yards viz; high marketing cost due to
high transportation, high commission, loading / unloading and other charges, because
of no assurance of remunerative prices. Further, sometimes there are chances of
delayed payment by commission agents and the unauthorized deduction by the
commission agents. In the marketing of Banana, besides the producers, the pre-
harvest contractors, wholesalers, and retailers also face identical problems as
following;
(i) Risk of crop losses due to natural calamity like heavy winds/storms, high
temperature, rains, diseases and pest etc.
(ii) Lack of infrastructural facilities like improper storage and transportation, absence
of pack houses and lack of mechanical grading facilities, and lack of adequate
precooling godowns in the local markets etc.
(iii) Lack of skilled labours for harvesting and post-harvest handing mechanisms.
INTRODUCTION 15
(v) Costly packing material
In addition to the above mentioned problems faced by the channel members in
the marketing of banana, one severe problem is the huge physical and economic post-
harvest loss during the harvest and post-harvest stages of banana marketing that not
only reduces the quantity of produce available to the end consumers but also
deteriorates the quality of banana which thereby fetches low marker value. The
physical and physiological quality loss in the produce also limit the chances of export
of banana outside the state and abroad. The present supply chain of banana in India is
burdened with various issues and challenges that needs to be resolved as soon as
possible in order to benefit the producer growers as well as the consumers with
minimal amount of wastages during the movement of the produce from the point of
production to the point of consumption. Deliya et al. (2012), stated that the existing
supply chain which links the producer to the end consumer, is extremely inefficient
with many intermediaries and ill post-harvest handling of the produce. This results is
tons of wastages as much as nearly 30 per cent of the total produce which further
reduces the remuneration to the producers. His study confirmed that about 25 to 30
per cent of fruits and vegetables are lost due to post harvest losses. The post-harvest
losses in case of Banana, is estimated to be around 20-80 per cent of the total
production (Kumar et. al. 2006). Hence there is an urgent need to overcome these
issues that will benefit the producer farmers, government agencies, customers and
other stakeholders in curtailing the losses and wastages that would further increase the
price share of the producer.
1.8 STATEMENT OF THE PROBLEM
Chhattisgarh state is rich in diversity of biotic, abiotic vegetation because of
its rich and diverse agro climatic conditions, which favours raising of several
horticultural crops such as vegetables, flowers, medicinal crops along with many
tropical and temperate fruits. Many new avenues has been adding to this sector over
the past years with the increase in yield and area under cultivation of fruits viz;
cashew, banana, mango, guava in addition to scores of vegetables. Even though,
Chhattisgarh state has been operational in the area of horticulture but the most crucial
INTRODUCTION 16
factor that is affecting this sector in Chhattisgarh is its low production. The state
produces about 2.15 million tonnes quantity of various fruits of which constitute only
0.24 per cent of national fruit production. Banana is an emerging fruit crop in
Chhattisgarh constituting about 26.64% of the overall quantity of fruits produced in
Chhattisgarh state but it contributes only 1.6 per cent in the national banana
production. This is because of low yield of banana in Chhattisgarh which is 25.73
MT/ha compared to nationwide average of 35.90 mt/ha though the yield potential of
Chhattisgarh is 44 MT/ha. (CG horticulture department 2015). Though, banana
cultivation forms an important business to the farmers of Chhattisgarh, but growers of
banana in Chhattisgarh are affected by the scores of challenges and issues in its
production and marketing. Chandrakar et. al. (2015) revealed in his study that the
major problems faced by the growers in cultivation of banana in Chhattisgarh was
lack of improved varieties for Banana cultivation, problem of electricity and high
temperature during summer crop. At the same time, high fluctuations of price, lack of
processing industry and storage facilities and absence of regulated marketing system
was stated as the most crucial constraints faced by the growers during marketing of
Banana. Past studies on marketing of fruits including banana has revealed that he
marketing of banana in Indian scenario is highly dominated by the presence of large
number of middleman/traders that not only increases the cost of marketing thereby
reducing the producers share in price but also leads to high post-harvest losses. (Jain
2007; Patel 2017; Halder and Pati 2011; Veena et. al. 2011). This problem of high
dependency on the middleman during marketing of the produce is further aggravated
by the lack of adequate and proper infrastructure for post-harvest handling of the
produce such as cold storage and warehousing facilities, cooling shed etc. which has
also been one of a major cause for huge physical losses during post-harvest handing
of the produce. The problem becomes more acute if the crop is perishable in nature
like banana. Supply chain of agricultural produce especially perishables, continues to
be very fragmented due to the presence of numerous intermediaries. (Narula 2011;
Sharma and Singh, 2011) According to a study on supply chain of fruits and
vegetables conducted by global Agri-system in four metros namely Kolkata,
Bangalore, Mumbai and New Delhi outlined that, there are around five to six
intermediaries between the producer and the end customer that adds up to about 60-75
per cent of the total price spread. Due to which, merely 20-25 per cent of the
INTRODUCTION 17
consumer’s price is fetched by the farmer producer. In addition to that, high wastage
of about 15-25% of the value is recorded due to multiple cross handling of the
produce by different intermediaries. In context of Chhattisgarh too, farmers depend
heavily on commission agents or village merchants to lift their bulk produce because
of lack of regulated mandis at district and tehsil levels that leads to unjustified
commission on purchase of produce by the trader in unregulated mandis. Eventually,
the net return of the producer reduces considerably. Another important problem faced
by the banana growers of our country is dearth of information regarding the market
prices, current demand in the market, procurement of produce by food processing
units etc. Absence of proper and timely information results in poor realization of
prices, large quantity of losses, delay in delivery of goods in the market place etc.
Timely and accurate information to the farmers have a significant role in increasing
the efficiency of the supply chain due to the smooth functioning of the supply chain in
presence of timely information (Negi et. al. 2015). There has also been considerable
pre and post-harvest losses in the horticultural produce like banana in Chhattisgarh
because of poor post-harvest management practices causing nearly 25- 40 per cent
loss of produce after harvesting. (State Horticulture Mission, Raipur 2013-14).
Post-harvest losses are massive in perishable agricultural produce like fruits and
vegetables as they are soft and tender and is most likely to spoil soon, if proper steps
are not taken at harvesting, handling and transportation. These physical loss in pre and
post-harvest stages not only reduces the producer’s share in consumers’ rupees but
also reduces the availability thereby causes their prices to escalate due to rise in unit
cost of marketing and transport.(Subhramanyam, 1986). In perishable horticulture
crop like banana, proper transport, packaging, scientific storage and handling
technologies are inadequate and thus, a significant quantity of produce is wasted.
Serious losses occur because of poor infrastructural facilities, lack of cold chain
facilities and proper packaging of the produce before transportation, lack of technical
know-how, improper market facilities and poor management or due to improper
handling of the produce by producer farmer, market functionaries and the consumers.
(Kumar et. al, 2006; Murthy et. al., 2009). Therefore, it is important that the post-
harvest handling practices should be given more attention as much as production
practices. Previous studies has shown that the major cause of massive post-harvest
losses in India is the lack of proper and adequate transportation facilities.
INTRODUCTION 18
Transportation has a very crucial role in marketing of the agricultural produce in case
of perishable food items like banana mostly because of its small shelf life, high
perishability and bulkiness. In the absence of proper transportation, the goods can’t
be supplied to the respective end customer in a correct quality and time. Constraints
related to transportation are very much pronounced in India due to unavailability of
efficient and cheap transportation mode and absence of temperature controlled van for
the movement of the banana produce (Singh et. al. 2009: Narula et. al. 2011). Value
addition and processing is a means to enhance the shelf life of the food items and
decrease the losses. Fair amount of food processing would lead to small wastage of
perishable produce. It provides an enormous opportunity to export the processed food
products to the numerous destinations. Unfortunately, in India the level of food
processing is alarmingly low as compared to other developed nations like U.S.A,
Brazil, and Philippines etc. India process merely about 1-2 per cent of total fruits and
vegetables produced plus there is a little value addition in the produce because of lack
of processing units in the proximity area that have huge economies of scale. (Negi et.
al. 2015; Satyanarayana 2007; Bharadwaj and Palapathy, 2008). In India, one of
the major cause for the massive post-harvest losses is the lack of proper post-harvest
management methods and techniques that renders the producer helpless in reducing
the wastages. It is argued that the growers are poor in knowledge pertaining to the use
of modern technologies that are effective and efficient. They also have poor
knowledge about the proper management of produce at pre and post-harvest stages of
marketing that leads to huge physical and economic losses to the growers as well the
consumers. In the absence of proper awareness and knowledge level of the farmer, the
supply chain of fruits and vegetables cannot become efficient since the farmers are the
primary source of fresh agricultural produce. (Shukla et. al., 2010; Modi et. al.,
2009). In the light of above mentioned features, it has become necessary to investigate
the marketing of banana in order to validate and test empirically the problems in the
present marketing system of banana in the Durg district of Chhattisgarh, so that
proper steps could be taken to eliminate the obstacles that restricts the overall
efficiency in the existing supply chain.
1.9 JUSTIFICATION OF THE STUDY
INTRODUCTION 19
The present study is undertaken to determine the current status of post-harvest
handling in banana, including physical loss assessment and marketing system of
banana along with the problems and to make possible suggestions to address the
identified problems. Despite the prominence of banana in the economy of
Chhattisgarh, a very few research studies have been conducted on the marketing and
postharvest handling including loss assessment of banana. So, it is anticipated that a
systematic in- depth study on the marketing and postharvest handling of banana could
be imperative to improve the overall marketing process including proper postharvest
management of this fruit crop. The progress in the production is fairly essential but
marketing has an equivalent advantages especially in case of commercial crop like
banana which is uprightly produced for selling in the market. Although, there has
been multi-dimensional efforts to improve the production of banana in the state,
however marketing and value addition have not received required attention. The
present investigation covering the problems of both marketing and post-harvest
handling provides a concrete platform for valuable analysis. The present study
provides information on various supply chains for movement of banana produce from
farmer/producers to the end consumers along with marketing cost, profit margins and
marketing efficiency in the existing channels. The study provides meaningful and
useful insights to the banana growers and market functionaries in marketing under
diverse channels with respect to viability of banana marketing. The results of analysis
of marketing efficiency and price spread would give first-hand knowledge about the
extent of benefits accrued by the producers and other stakeholders which will pave the
way for making improvements in the existing marketing system. The study may also
explain the selling behavior of banana growers, its reasons and consequences. More
particularly, the results would help the banana growers in taking timely decision
regarding the disposal of the banana fruits considering the features of perishability,
seasonability and the frequent fluctuations in the price received by them. The
outcomes of the study will determine the marketing costs incurred by the growers and
market functionaries, which influences the final prices paid by the consumers and
bear a significant effect on the efficiency of the channels. Thus it will be beneficial in
introducing an alternate system of marketing that operates parallel to the present
system providing better returns on the produce with minimized cost. This certainly
would also help in tracing out the most viable marketing channel. The results of the
INTRODUCTION 20
study, in sum, would help the policy makers, research institutions and associated
agencies in formulation of appropriate policies and strategies for the betterment of
overall marketing process for banana crop. The study will also encourage private and
public sector for establishment of value addition and processing centres that would
lead to development of socio economic condition of banana growers paving the way
for sustainable development of agriculture in the state and eventually benefit the
national economy. Fostering entrepreneurship and creating and supporting of rural
businesses is crucial for the survival and integrated development of rural economies.
However, despite the acknowledgement that agri-entrepreneurship is one of the
primary aspects through which economic development in rural areas can be achieved,
a very few empirical research studies on entrepreneurial competency of farmers is
undertaken. (Wolf et al. 2007). The present study will also analyze the entrepreneurial
behaviour of banana growers to ascertain, whether their success or tragedy had
anything to do with their entrepreneurial characteristics. An appreciation of this
phenomenon may expand the conceptual understanding of farming as
entrepreneurship and help formulate realistic agricultural policies. In perishable
produce like banana, proper scientific storage, packaging and handling technologies
and efficient transportation facilities are inadequate and therefore, a significant
quantity of produce is wasted. Post-harvest losses occur at several pre and post-
harvest stages starting from the harvesting loss till the produce reaches the end
consumer. In post-harvest stages, major loss occurs during transportation in the
wholesale and retail markets. Huge losses occur due to poor post-harvest
management, poor infrastructural facilities, inappropriate market facilities and lack of
technical know-how leading to poor handling of the produce by the growers, market
functionaries and consumers. For that reasons, the post-harvest practices should be
given as much importance as production practices. The present study will estimate the
physical post-harvest losses in banana at various stages of handling that would help in
ascertaining the degree and magnum of losses incurred and identify the causes behind
such losses. This, in turn would help in evolving proper measures to eliminate post-
harvest losses at various stages from point of production to point of consumption.
Under the present situation, decrease in post-harvest losses would help in aggregating
the availability of banana to a large extent without the need to increase the production.
The resultant information on the magnitude of losses at different stages is imperative
INTRODUCTION 21
not only for technologists and scientists but also useful to industrialists, administrators
and policy makers in farming appropriate policies that can help in decreasing the
extent of post-harvest losses in banana. The technologists and scientists would be
directed by the findings of this study in making improvements in the harvesting and
post-harvest technologies focused at minimizing these losses. Thus, the present
investigation will be useful and meaningful not only to the banana growers in Durg
district but also to market functionaries, policy makers and government and non-
governmental institutions in improving the present system of banana marketing
through appropriate actions and policy measures. Hence, the present study is
conducted with the following specific objectives:
2.0 OBJECTIVES
1. To assess the entrepreneurial behaviour of sampled Banana growers in different
size of farm groups.
2. To study the disposal pattern of Banana in different channels of marketing in
different size of farm groups.
3. To work out the marketing cost, marketing margin and price spread in different
channels of marketing in the study area.
4. To estimate the physical post-harvest losses at farm, wholesale and retail levels and
to identify the causes of losses.
5. To identify the constraints faced by growers in production and marketing of banana
and recommend suitable policy measures.
2.1 HYPOTHESES
1. Among the stages of post-harvest handling of produce, maximum losses occur
at the farmer’s field level.
2. Marketing Loss is inversely proportional to the marketing efficiency.
3. The producer share in consumer’s price in a channel will be less when
marketing functionaries are more.
REVIEW OF LITERATURE
A thorough review of literature is an essential part of any investigation as it not only
provides an idea on the work done in the past but also provides the base for discussion
and interpretation of the results and findings. It also helps the researcher to have a
clear and better understanding of the perspectives of the research problem which
further facilitate the researcher in setting the hypothesis and objectives and to
compare the findings. The present investigation deals with the study of marketing and
post-harvest losses of banana in Durg district of Chhattisgarh. Hence, this chapter
makes an attempt to review pertinent literature having direct and indirect bearing on
the present study. For better clarity and comprehension, the literature cited has been
grouped in different sections in accordance with objectives of the study as presented
below:
2.1 Entrepreneurial characteristics of sampled Banana growers
2.2. Disposal pattern of Banana and estimation of marketing cost, marketing margin
and price spread in Banana cultivation.
2.3. Estimation of physical post-harvest losses at farm, wholesale and retail levels and
identification of the causes of losses.
2.4. To identify the constraints faced by growers in production and marketing of
banana.
GROWERS
ability, information seeking, knowledge of the farming, farm decision making,
assistance of management service, co-ordination of farm activities, leadership ability
and cosmopoliteness.
REVIEW OF LITERATURE 23
Singh and Krishna (1994) discussed the case of a group of cotton growers in
Andhra Pradesh to emphasise how the lack of relevant entrepreneurial capabilities can
lead an ostensibly successful agricultural operation to tragic failure. He also attempted
to conceptualise this perception and to analyse the entrepreneurial characteristics of
farmers in the selected area. The results have shown that entrepreneurship is a
necessary condition for optimum results in agriculture, relating particularly to the
cultivation of commercial crops. In Indian agriculture, where markets for
commodities as well as inputs are imperfect and government intervention tends to
move the economic system further away from even sub-optimal utilisation of
resources, the entrepreneurial capabilities of the farmer might compensate for these
shortcomings - at least to a degree. Conversely, the lack of entrepreneurial qualities
would only compound the constraints.
Nomesh Kumar and Narayana Swamy (2000) in their study on
entrepreneurial behaviour and socio-economic characteristics of farmers who adopted
sustainable agriculture in India defined entrepreneurial behaviour as a combination of
seven components viz.,innovativeness, decision making ability, achievement
motivation, information seeking ability, risk orientation, coordinating ability and
leadership ability
Narmatha et al. (2002) stated that innovativeness, achievement motivation
and risk orientation were the most important components. And further, the component
decision-making, innovativeness, management orientation, economic motivation,
level of aspiration and risk orientation were found to be crucial in influencing the
entrepreneurial behaviour.
Rao and Dipak De (2003) conducted a study on entrepreneurial behaviour of
vegetable growers in Varanasi and revealed that majority (60.00%) of the respondents
had medium entrepreneurial behaviour score while, 16.00 and 23.30 per cent
respondents had low and high entrepreneurial behaviour scores, respectively.
Vijay Kumar et al. (2003) operationalized entrepreneurial behaviour as the
cumulative outcome of information seeking behaviour, farm decision making,
REVIEW OF LITERATURE 24
market orientation of respondent farmers.
Vijay Kumar et al. (2003b) in their study on entrepreneurial behaviour of
floriculture farmers of Hyderabad operationalized entrepreneurial behaviour as the
cumulative outcome of information seeking behaviour, farm decision making,
leadership ability, risk orientation, innovativeness, achievement motivation and
market orientation of respondent farmers
Chandra Mouli Pandeti (2005) studied entrepreneurial behaviour of farmers
in Raichur district of Karnataka during 2004-05. The important findings of the study
were: majority (39.17%) of farmers had medium entrepreneurial behaviour. Among
categories, majority (42.50%) of small farmers had low entrepreneurial behaviour,
while 37.50 per cent of medium farmers and 42.50 per cent of big farmers had
medium and high entrepreneurial behaviour, respectively. A positive and significant
relationship was observed between entrepreneurial behaviour of farmers and their
personal, socio-economic and psychological characteristics such as education, land
holding, annual income, social participation, mass media participation, extension
participation, level of aspiration and adoption. The study revealed that the most
important components of entrepreneurial behaviour were information seeking
behaviour, innovativeness, farm decision making, assistance of management service
and achievement motivation.
Nagesha (2005) in his study on entrepreneurial behavior of vegetable seed
producing farmers in Haveri district of Karnataka found that majority (68.30%) of
respondents belonged to medium entrepreneurial behaviour, whereas 17.50 per cent
were in low entrepreneurial behaviour and 14.10 per cent of respondents were in high
entrepreneurial behaviour category.
Hendge et. al. (2007) conducted a study on entrepreneurial behaviour of
banana growers in Nanded district of Maharashtra during 2003-04 and observed that
most (40.84 %) of the respondents were from middle age category, 41.66 per cent
were educated upto higher secondary level. The annual income of 68.33 per cent of
the respondents was found to be medium (Rs. 43,331 – 178220) and maximum
REVIEW OF LITERATURE 25
numbers (84.66 %) of them has farming as their primary occupation. The land holding
of the majority of the respondents (44.16 %) was found to be medium and they had
medium market orientation (55.84 %). Majority of them had medium extension
contact with high social participation (60.00 %). The study also revealed that more
than half (55.00 %) of the respondents had medium entrepreneurial behaviour while
23.34 and 21.66 per cent of the respondents had low and high entrepreneurial
behaviour, respectively. It was observed that education, annual income, occupation,
market orientation, extension contact and social participation were positively and
significantly related with entrepreneurial behaviour was found non-significant.
Ashok Kumar Bennur (2011) studied entrepreneurial qualities and adoption
behaviour of banana growers in Gulbarga district of North Karnataka and revealed
that with respect to entrepreneurial qualities, majority (68.30%) of the respondents
belonged to medium entrepreneurial qualities category. Whereas, 17.50 per cent were
in low entrepreneurial qualities category and 14.10 per cent of the respondents were in
high entrepreneurial qualities category. The meager per centage of farmers(14.1%) of
banana growers were in high entrepreneurial qualities this may be due to the low
education status of the respondents (40.83%) were educated up to high school level
and majority (60.83%) were falling under middle age category. The study also
revealed that, education, mass media participation, extension contact, scientific
orientation, risk orientation and achievement motivation found to be positively and
significantly associated with entrepreneurial qualities which may have led to the
medium entrepreneurial qualities of the banana growers including others
entrepreneurial characteristics which was found to be medium category like
innovativeness, economic motivation, leadership ability and cosmopolitness.
Balasaravanan (2012) conducted a study in the Regulated Markets of
Thanjavur district and focused on identifying entrepreneurial characteristics among
the farmers and determines the level of entrepreneurial behavior among the farmers.
Among them with regard to innovation it was found low among the small and
marginal farmers. The level of leadership ability and ability to assume risk also found
low, requiring the improvement in the entrepreneurial behavior particularly among the
REVIEW OF LITERATURE 26
marginal farmers. The study has highlighted the need to improve decision- making
ability among the farmers and their level of innovations in farmer practices.
Wankhede et. al. (2012) studied entrepreneurial behaviour of vegetable
growers in Akola district of Maharashtra state during 2012-13. Findings of the study
revealed that majority of the respondents were found in medium level with respect to
all the main entrepreneurial attributes of vegetable growers which indicate the
importance and contribution of these entrepreneurial attributes in achieving
entrepreneurship especially among vegetable growers. All the entrepreneurial
attributes namely risk taking, hope of success, persusability, manageability, self-
confidence, knowledgeability, persistence, feedback usage, innovativeness, and
achievement motivation were having significant contribution in entrepreneurial
behavior. Price fluctuation in the market, no provision of vegetable crop insurance,
exploitation by middleman, non-availability of labour at the time of harvesting of
vegetables, high input cost, inadequate extension services, insufficient electricity,
reducing water table and non-availability of quality planting (seedling) material were
the major constraints faced by vegetable growers.
Mehta et. al. (2012) in his study on entrepreneurial behaviour of Mango
growers of Valsad District of Gujarat State found that majority of the mango growers
were found in medium to high level category as far as entrepreneurial behaviour is
concerned. The indicators decision making was ranked first followed by market
orientation (rank second) and economic motivation (rank third). Majority of
respondents (73.00 %) were observed in the medium entrepreneurial behaviour
category, thus, the entrepreneurial behaviour of the respondents was predominantly
medium. Education, area under mango cultivation, annual income, social
participation, awareness regarding value addition, mango yield index, employment
generation, extension participation, mass media exposure, extent of adoption,
management orientation, innovativeness, progressiveness and knowledge of mango
growers had significant relationship with entrepreneurial behaviour of mango
growers. Whereas age, land holding, irrigation facility, family size and cropping
intensity had no association with entrepreneurial behaviour of mango growers.
REVIEW OF LITERATURE 27
Bairwa et. al. (2014a) studied about basic concepts of agripreneurship,
entrepreneurship skills, and needs of agripreneurship development in India along with
major reason for promoting agripreneurship development in country. In his study he
concluded that shift from agriculture to agribusiness is an essential pathway to
revitalize Indian agriculture and to make more attractive and profitable venture.
Agripreneurship have the potential to contribute to a range of social and economic
development such as employment generation, income generation, poverty reduction
and improvements in nutrition, health and overall food security in the national
economy. Agripreneurship has potential to generate growth, diversifying income,
providing widespread employment and entrepreneurial opportunities in rural areas.
Bairwa et. al. (2014b) explored the potential opportunities in agribusiness
management education which helps in employment generation and entrepreneurship
development. Agribusiness management education is a discipline of blend of
economic, agriculture, business (commerce) and management principles.
Agribusiness management field is of very recent origin and gaining rapid popularity
among students as carrier choice. The agribusiness program is planned to develop
management workforce to cater agricultural Industry which serves as a good option
for the students willing to perform in corporate sector. Agribusiness management
education has great opportunities of employment for agrigraduates in private,
governmental and cooperative sector. Agribusiness students can get jobs for various
posts such as sales executives, credit officers, agri experts, warehousing managers,
financing officers, food managers and logistic managers in national and Multinational
Corporation. Agribusiness professionals have bright future in academic field due to
new emerging discipline and lack of agribusiness faculty in the country. Agribusiness
sector also helps in fighting against the Poverty, Hunger, Malnutrition and
unemployment situations in the economy. Thus, Agribusiness management sector will
change more in the next decade than it did in the last century.
Patel et. al. (2014) studied the entrepreneurial behaviour of dairy farmers
selected from all the dairy farmers of Panagar block of Jabalpur District of Madhya
Pradesh. The study reflected that majority of the dairy farmers found to have medium
level of entrepreneurial behaviour followed by high and low level of entrepreneurial
REVIEW OF LITERATURE 28
dairy experience, organizational participation, land holding, livestock possession,
annual income, material possession, economic motivation, market orientation,
scientific orientation and knowledge of improved dairy management practices at 0.01
level of probability, whereas education had positive and significant relationship with
entrepreneurial behaviour at 0.05 level of probability.
Rai et. al. (2014) conducted a study on entrepreneurial behaviour of vegetable
farmers in Bhopal district of M.P. during the period 2011-12. The investigation was
confined to 10 villages in Agri Export Zone (AEZ) for vegetables in Madhya Pradesh.
It was intended to conceptualize the entrepreneurial behaviour of the vegetable
growers in terms of their socio-personal, agro-economic, extension communication
and socio- psychological traits. The findings of the study are expected to be useful in
identifying farm entrepreneurs for involving them in agriculture development. The
mean value of entrepreneurial behaviour of small vegetable growers was lower than
overall mean. The overall mean and per centage distribution of economic motivation
of the vegetable growers indicated that majority of respondents had medium level of
economic motivation. The overall mean and per centage distribution of vegetable
growers according to their knowledge about vegetable production technology
indicated that majority of respondents had medium level of knowledge about
vegetable production technology. It also indicated that the knowledge about vegetable
production technology of the small farmers was lower than the medium and large.
I. Bangar Raju and M. Lakshmipathi Raju (2015) studied the orientation of
entrepreneurship to agricultural activities in India and discussed the prospects of
agricultural entrepreneurship in the VUCA world. They found that agriculture is a
livelihood activity in India. The inherent ills of India agriculture is that low
productivity and prevalence of disguised unemployment. These ills shall be addressed
through Agricultural Entrepreneurship. Not only that some of the chronic economic
problems like urbanization, poverty and unemployment also be addressed by effective
agricultural entrepreneurship initiatives. Thereby, acceleration of rural development
and economic development is possible. Agricultural Entrepreneurship is a strategic
development intervention that has the potential to accelerate the rural development
REVIEW OF LITERATURE 29
process. Agricultural entrepreneurship is vital for the generation of employment in the
rural areas and for promoting incomes and earnings of people.
Manjunath et. al. (2015) conducted a study to know the entrepreneurial
behaviour of mango growers in Kolar and Ramanagar district of Karnataka during the
year 2014-2015. Major findings revealed that more than half (55.83%) of the
respondents belonged to medium entrepreneurial behaviour category. With respect to
dimensions of entrepreneurial behavior, majority of the respondents had medium level
of risk orientation (63.33%), achievement motivation (59.17%), innovativeness
(53.33%), decision making ability (52.00%), management orientation (50.00%),
scientific orientation (45.83%) and economic motivation (42.50%). The variables
namely education, land holding, family annual income, faming experience in mango
cultivation, mass media exposure, extension participation and extension contact were
found important in influencing the entrepreneurial behaviour of the mango growers.
The regression coefficient of the selected variables viz., education, mass media
participation, extension participation and extension contact showed positive and
significant relationship with entrepreneurial behavior. The value of coefficient of
multiple regression (R2) in this case was 0.603 indicating thereby, that 60.30 per cent
variation in the entrepreneurial behaviour of the mango growers was explained by the
ten independent variables selected for the study.
Kumara et. al. (2016) attempted to investigate entrepreneurial behaviour of
vegetable growers and the factors contributing towards entrepreneurial behavior and
its association with their personal and socio-economic traits. The important findings
of the study were: majority (41 %) of farmers had medium entrepreneurial behaviour
followed by low (39 %) and high level (19 %) of Entrepreneurial behavior. A positive
and significant relationship was observed between entrepreneurial behaviour of
farmers and their personal, socio-economic and psychological characteristics such as
education, land holding, social participation, mass media participation, extension
participation, level of aspiration and adoption. It was found that the most important
components of entrepreneurial behaviour were information seeking behaviour,
innovativeness, farm decision making, and assistance of management service and
achievement motivation.
REVIEW OF LITERATURE 30
Wanole et. al. (2017) studied entrepreneurial behaviour of banana growers in
Nanded district during 2016-17 and noticed that, majority of farmers (67.50 %) had
medium farming experience whereas, As regards to education, 32.50 per cent of
farmers were educated up to higher secondary school level and 4.17 per cent of
farmers were illiterate. As regards to family size majority of the farmers (62 %) were
in medium family size and 17.50 per cent were in small family size. As regards to
occupation, majority of the respondents (75.00 %) were engaged in farming alone.
2.2. DISPOSAL PATTERN OF BANANA AND ESTIMATION OF
MARKETING COST, MARKETING MARGIN AND PRICE SPREAD IN
BANANA
Babhulkar N.N (1998) studied marketing of Banana in Thane District of
Maharashtra and found that the major varieties of banana cultivated in Thane district
are safed velchi, Lal velchi and Bhurkel. He also observed that the marketing channel
for banana are three viz. First. Farmer to contractor, second farmer to commission
agent and third is farmer to co-operative society. The maximum marketing (44.80%)
is found in the II channel that is farmer to commission agent followed by channel-1
41.14% and channel III (15.80%). He observed that price received by the producer
were Rs.350.00 per quintal in local market. Net price received by grower after
deducting marketing expenses (Rs.50.28/qunital) were Rs. 299.72/quintal. The price
received by the producer in distance market is Rs. 500/quintal and net price received
after deducting market expenses (Rs. 128.48) were Rs. 371.52/quintal. In this
marketing system the producers share is found maximum (85.63%) in local market
and minimum (74.30%) in distance market due to higher transport charges (61.15%)
in distance market. The other marketing charges for loading, unloading, grading,
packing, handling and commission are quite similar in both marketing.
Uma et al., (1998) studied marketing and export of Banana in India and
concluded that even after attaining self-sufficiency and surplus production of banana,
India is not able to compete in the international market for banana export due to the
presence of bottlenecks in marketing channels and gaps in production with good
export quality. For the improvement and development of the marketing structure, a
co-ordinated approach aimed at removing all the weak links in the marketing chain is
REVIEW OF LITERATURE 31
essential. A package of improved marketing services in the form of regulated co-
operative markets, facilities for grading, weighing, storing, transporting, handling and
finance provision is to be made available to ensure the producer a fair return from his
production effort and a better share in the price paid by the consumer by fixing an
appropriate support price and procurement price. Market research programmes should
be oriented to the developing of an orderly and efficient marketing system. Though
the National Horticulture Board (NHB) has developed a very good marketing
intelligence to disseminate marketing information regarding horticultural produce to
the interested parties, commodity intelligence bulletins exclusively for banana need to
be published. He further suggested that India being in era of surplus banana
production, developing a systematic banana marketing channel and extending its
range to foreign countries by improving the shelf life period and storage and export
facilities has become crucial. Developing new banana varieties with prolonged shelf
life period and export qualities etc. are the areas of primary interest.
Mishra et al. (2000) in their study on production and marketing of Banana in
Gorakhpur district of Uttar Pradesh assessed that the small farmers were selling their
produce to pre harvest contractor (25%), village trader (20%), wholesalers (20% of
produce), commission agent-cum –wholesaler (15%) and by direct at sale local
market (20%). Medium farmers sold their produce to the commission agents (20%),
pre harvest contractors (25%), to the wholesalers (15%), village traders (20%), direct
sale in local market (25%). And large farmers sold their produce to commission agent
cum wholesalers (25%), Pre harvest contractor (25%), to wholesalers (10%), village
trader (15%), direct sale in local market (30%).
Guledgudda et al. (2002) studied production and its marketing in Haveri
district of Karnataka. The findings of the study indicated that that farmers in the study
area followed three distinct marketing channels to sell their produce. Those channels
were: Channel-I: Farmer --- Pre Harvest Contractor‘s --- Commission agent ---
Wholesaler --- Retailer --- Consumer, Channel-II: Farmer --- Commission agent ---
Wholesaler --- Retailer --- Consumer and Channel-III: Farmer --- Retailer ---
Consumer.
REVIEW OF LITERATURE 32
Farmers spent Rs. 1.50, Rs. 2.50 and Rs. 10.25 per bunch of banana marketing in
channel-I, channel- II and channel-III respectively.
Shivanand (2002) studied on performance of banana plantations in Northern
Karnataka, and identified two major marketing channels for banana namely; Channel-
I: Producer --- Commission agent cum Wholesaler --- Retailer - - Consumer Channel-
II: Producer --- Village level trader --- Commission agent cum Wholesaler--- Retailer
--- Consumer. Among the two channels identified channel-I was found predominant
over channel-II in marketing of banana in the study area. The marketing cost incurred
by the producer in channel I was Rs. 9.50 while the marketing costs in channel-II was
nil for producers.
Mali et al. (2003) in his study on production and Marketing in Jalgaon district
in Maharashtra for Dwarf Cavendish (Basra) variety of banana. The study revealed
that the cost of cultivation of Banana worked out to Rs. 133477.36 per hectare. The
gross returns per hectare of Banana came to Rs. 214867.24 and net returns of Rs.
66761.87 were obtained by deducting the cost of marketing. The study concluded that
the per quintal cost of marketing of banana was the highest in case of local traders
followed by cooperative fruit sale societies who were selling the produce to the
private traders. The cost of marketing per quintal was the lowest in case of
cooperative societies selling the produce in Delhi market.
Verma and Singh (2003) studied Banana marketing in Bihar, Jharkhand,
Orissa, West Bengal and Assam market. The findings indicated that the longer the
marketing channel, the smaller was the farmers share. A high marketing margin is
primarily due to high transport cost and product losses. Special emphasis needs to be
placed on marketing practices at the farmer’s sale level. Most growers market their
Banana through middlemen, such as commission agents and local traders. These
intermediaries often claim up to 8 per cent of the value of sales. Direct sales are
limited, however, by a lack of adequate transport facilities, and high costs associated
with them, maximum price has been observed in Guwahati market on a average basis
followed by Ranchi Market. The findings indicate that the longer the Marketing
channel, smaller was the farmers share. A high marketing margin is primarily due to
high transport costs and product losses. The development of transport network, better
REVIEW OF LITERATURE 33
packaging and product handling technologies is necessary for efficient marketing
system.
Rane and Bagade (2006) in their study on production and marketing of
banana in Sindhudurg district of Maharashtra revealed that about 71 per cent of the
produce was routed through Channel –II i.e. Producer ---- City wholesaler ----
Retailer ---- Consumer and about 29 per cent of total produce was routed through this
channel I (Producer ---- Village Retailer ---- Consumer). The average cost per bunch
of banana marketing incurred by the producer in Sindhdurg district was Rs. 50.06.
Total marketing cost per bunch of banana incurred by the producer in in Sawantwadi
tehsil it was Rs. 40.33 and Rs. 59.79 in Dodamarg tehsil.
Jain and Nichit (2007) examined the marketing aspects of horticultural crops
in Dharsiwa block in Raipur district of Chhattisgarh. The study revealed that the area
under horticultural crops was increased at small and medium farms but decreased at
large farms. The cropping intensity was vary from 152.03 per cent at large farms to
179.03 per cent at small farms. The farmers sold 96-98 per cent of fruits and
vegetables in market and very less (2-4%) amount of it was used for home
consumption. The marketed surplus was increase with increasing the size of holding.
The two channels observed in the marketing of fruits and vegetables were, channel-I:
Producer-consumer and channel-II: Producer-commission agent/retailer-consumer.
The study revealed that the farmers were selling 77 per cent vegetables and 91 per
cent fruits through the commission agents. The channel-I was more popular among
the small farmers because they received more prices in this channel.
Sarode (2009) studied the economics of banana marketing in Jalgaon district
in the state of Maharashtra and concluded that the overall producer net share in
consumer rupee was 46.41%. The share of wholesaler (7.46%) and retailer (11.35%)
were substantially large which affected the producers share in consumer’s rupee.
There was a big gap between prices paid by the producers. The middleman share can
be reduced by eliminating number of intermediaries from marketing channel and
bringing the consumer closer to producer. This would also raise the producer share in
consumer’s rupee.
REVIEW OF LITERATURE 34
Pawar et al. (2010) investigated marketed surplus and price spread in banana
marketing carried out during the year 2008-2009 in Maharashtra. The results reveled
that size of banana garden was 1.98 hectares with 439.56 quintals of banana
production. The highest quantity of banana production was marketed through
Channel-III (Producer-Trader-Wholesaler-Retail shop owner-Consumer) that was
60.38. Per cent. Per quintal price paid by consumer was highest as Rs.800 in Channel-
III followed by that of Rs.650 in channel-II (Producer – Merchant – Retailer –
Consumer) and Rs.530 in Channel-I (Producer – Vender – consumer). Producer’s
share in consumer’s rupee was highest as 92.98 per cent in Channel-I followed by that
of 78.77 per cent in Channel-II and 69.77 per cent in Channel- III. But net price
received by producer was the highest as Rs.558.18 in Channel-III followed by Rs.512
and Rs.492.80 in Channel- II and Channel-III, respectively. Price spread was also
highest as Rs.241.82 in Channel-III followed by that of Rs.138.00 in channel-II and
Rs.37.20 in Channel-I. It inferred that channel-III was found to be the most efficient
with respect to producer as well as intermediaries in absolute term.
Bhat et. al. (2011) in his study on production and its marketing of Kinnow
under North -Western Himalayan Region of Jammu revealed four important channels
identified for kinnow marketing in the study area viz.: Channel-I: Producer →
Forwarding/ Commission agent → Retailer → Consumer, Channel-II: Producer →
Wholesaler → Retailer → Consumer, Channel-III: Producer → Retailer → Consumer
Channel-IV: Producer → Consumer. A comparison of price spread through different
marketing channels has revealed that producers’ share in consumers’ rupee was the
highest (about 81%) in channel-IV, due to self-sale in the local market when the
produce is sold directly to consumers. Price spread analysis has revealed that different
market intermediaries are the major beneficiaries in the marketing channels. The
marketing efficiency has been found to be highest in channel-IV. The producer got
maximum benefits in channel-IV, therefore this channel should be followed to make
producer highest beneficiary. However, the marketing efficiency has been found high
in channel- IV (4.27), followed by channel-III (1.46), channel- I (1.00) and channel-II
(0.80).
Takle et al. (2011) studied banana marketing management system in Nanded
district of Maharashtra state. The study revealed that two channels existed in the study
REVIEW OF LITERATURE 35
area namely: Producer to Pre-harvest contractor to Wholesaler (Distribution market)
to Wholesaler (Consumer market) to Retailer to Consumer and found that there is a
heavy difference in the price of banana received to producer and paid by consumer.
The study also revealed that the fruit market is not efficient for Banana in India as
within the market chain from producer to consumers Banana prices hike by 301 per
cent. The main reason behind this heavy costing by the agents and near about 20 per
cent banana usually wasted because of unavailability of advanced facilities like cold
storage plants. The study further suggested that to overcome this problem Banana
producers and consumer come under the umbrella of Rayat Bazaar and also adopt
complementary market management system for Banana. Adoption of Rayat
Marketing Management System prevents the rate hikes by the agents and it is fruitful
for the farmers as well as consumers. Efficient and favorable agricultural market is
helpful to promote this sector to achieve 4% growth rate.
Gowri and Chandrasekaran (2012) studied the value chain of banana sector
in western Tamil Nadu for different varieties of banana — Nendran, Poovan, Kathali
and Robusta. The analysis implied that to improve the marketing efficiency, the
growers should sell their produce directly to the wholesaler or tie up with the
processor or retailer wherever feasible. To prevent the post-harvest loss, there is need
for training in post-harvest handling of fruit bunches and farmers must have the latest
market knowledge, for taking better sales decision.
Naveen B. (2013) conducted a study to assess the production and marketing of
banana in Chikkaballapur district. The study revealed that there were three important
marketing channels in the study area. The Channel-I; Producer, Village level trader,
Wholesaler, Retailer and Consumer. Channel-II: Producer, Wholesaler, Retailer,
Consumer. Channel-III: Producer, Wholesaler, Vendor, Consumer. The share of
producer in the consumer rupee was higher (50.90%) in Channel-III compared to
Channel-II (46.80%) and Channel-I (41.59%). Farmers preferred Channel-I, because
they received cash immediately after the sale of the produce to village level trader at
the farm level itself and to avoid the risk of violent price fluctuation in open market.
Gowri and Shanmugam (2014) studied the production trends and present
marketing practices of banana in India and found that the production, as well as
REVIEW OF LITERATURE 36
exports and imports of bananas, are highly concentrated in a few countries. India,
China, the Philippines, Brazil and Ecuador alone produced more than 60 per cent of
total world banana production. This concentration of banana production has increased
over time although showing a different regional distribution. Banana is the largest
produced and maximum consumed amongst the fruits cultivated in India. However,
the present production of banana in the country is highly inadequate. It is estimated
that, the present annual per capita consumption of banana in India is 50 kg per head
which is very low compared with other progressive banana growing countries such as
Jamaica, Congo, Ecuador, and Uganda. Thus, there is an immense scope of increasing
banana production in the country. The post-harvest losses in banana have been
estimated in the range of 25-40 per cent from harvesting to consumption stage.
Storage is essential for extending the consumption period of fruits in general by
regulating their supply to the market and also for transportation to long distances.
Naveen et al. (2015) conducted a study to study the production and