Analysing Costs and Marketing Channels in Natural Rubber Marketing in Karnataka, India

K. N. Nithin and S. B. Mahajanashetti

Asian Journal of Agricultural Extension, Economics & Sociology, 2025, vol. 43, issue 2, 5

Abstract: This study examines the costs and marketing channels involved in the trade of natural rubber in Karnataka, the third-largest rubber-producing state in India. Conducted in Dakshina Kannada and Udupi districts, the research focuses on the marketing arrangements for rubber latex and rubber sheets. The findings reveal that a significant majority (63.33%) of farmers prefer selling rubber sheets through Type-2 Rubber Producers’ Societies (RPS), which handle over 60% of the rubber production. The study highlights that transportation is the largest cost component across all channels. The study also identifies three primary marketing channels: Channel-1 (Farmer → Type-1 RPS → Manufacturers), Channel-2 (Farmer → Type-2 RPS → Marketing Co-operatives → Manufacturers), and Channel-3 (Farmer → Primary Dealer → Secondary Dealer → Manufacturers). The analysis of price spreads shows that Channel-1 provides the highest producer share in the consumer’s rupee (97.94%), followed by Channel-2 (95.72%) and Channel-3 (95.03%). The study underscores the need for optimized logistics and improved marketing efficiency.

Keywords: Marketing (search for similar items in EconPapers)
Date: 2025
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