Comparative Analysis of Different Distribution Channels with Regard to Price of Select Vegetables: An Analytical Study of Telangana Region

Abstract

The purpose of this paper is to understand the price realized by farmers from different distribution channels for their vegetable. Price is one of the primary drivers for an efficient supply chain. This analysis was part of a study to find the efficiency of different channels for vegetable supply chain and to find out what are the reasons and how farmers can get the right remuneration for their vegetables. The data was collected based on questionnaire from 410 farmers who are using different channels. The data analysis is based on the sample data for four districts of Telangana and three selected vegetables which are assumed to be representative of the overall sample frame. It was observed that there is significant variation of price received from different channels and the variation exists between different districts. It was also observed that there is significant difference between maximum and minimum price realized due to wide gap of supply and demand. There is no crop planning exists aligned with historical demand. Also, there is no systematic approach to divert the excess production to alternate market. This study will help in understanding the farmer’s price realization from different channels and create a framework to improve the situation for farmers by getting a better price.

Keywords: Distribution Channel, Vegetables, Price

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