An economic analysis of maize marketing in Odisha

K. Madhu Babu and K.V. Giri Babu

Indian Journal of Agricultural Marketing, 2015, vol. 33, issue 3

Abstract: Maize is the third largest food crop produced and consumed in |India after rice and wheat. It is the most versatile crop and cultivated thought out the year in most of the Indian states for various purposes. Maize grown area has slowly expanded in India over the last six and half decades from 3.16 mil ha to 8.69 mil ha and the production and productivity significantly increased from 0.01 mil MT to 21.81 mil. MT, 390 kg/ha to 2509 kg/ha. respectively (1950–51 to 2015–16). Among Indian Sates Odisha occupies a prominent place in maize production mostly in southern part of the state. The production and productivity has increased at a large scale 60.86 and 54.77 percent between the years 2000–01 to 2015–16. The maize crop is mostly grown-up in tribal districts during Kharif season. The state has five major maize growing districts viz. Nabarangpur, Gajapathi, Rayagada, Ganjam and Koraput contributed about 91.34% of total maize production in the state. Nabarangpur and Gajapathi ranked 1st and 2nd place and the production share was 75.69% of total state maize production (2015–16). About 90% of produce is sold outside the state, as it has no maize based processing industries either for livestock or value added products for human being. Moreover, there is no direct marketing practice, rather it is performed through the private traders at low price, which adversely affects the producers share. Therefore the study estimated the area, production and productivity growth trends of maize crop of major grown districts of Odisha (1997–98 to 2015–16) and discussed the status of agro based and food processing industries in the state. Cost of cultivation, gross returns and net returns, available marketing channels of maize produce, production and marketing constraints and the suggestions made by the sample farmers from selected districts are also discussed. to identify the constraints in production, efficient marketing and processing of maize and suggest policy measures. Four marketing channels appeared for maize marketing and the highest 45% of maize produce sold to wholesalers/commission agents next to village traders, outside wholesalers and bio-tech companies. Among farmer groups, the average marginal farmer highest 57.12% produce sold to village traders at farm gate in the study districts of Nabarangpur and Gajapathi. Among marketing channels net price received Rs.1080 per quintal in channel-I, followed by Rs.1135, Rs.1195 and Rs.1190 per quintal received by channel II, III and IV. Marketing efficiency found to be conventional and Shepherd method reported to be highest in channel IV and the Acharya's method in Channel III. Channel III and IV have taken higher marketing margins by the market intermediaries. Although channel III is more efficient in marketing of maize produce paid the highest price per quintal to the maize producer in the existing markets in the sample districts. The Government procurement agency is necessary for marketing of maize produce. Establish the mandis near the maize harvesting places or villages by the government. Extend the storage facilities in the market yards. To create awareness about the marketing facilities through TV, Newspapers and pamphlets by the state agricultural department. The government can promote post-harvest and market infrastructure. It covers primary processing of maize including weighing, cleaning, grading, sorting, drying and packing etc. The majority of sample farmers is cultivating maize crop in uplands, un-irrigated, hill track and forestlands in Kharif season. Moreover, frequently natural calamities have been occurred in the state. So, the maize is best available option for economic security than the traditional indigenous crops.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:injagm:399668

DOI: 10.22004/ag.econ.399668

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