Agricultural Produce Supply Chain Network of Capsicum: Empirical Evidence from India

Pankaj Thakur (), Piyush Mehta, Priyanka Lal, Rashmi Chaudhary, Saswat Kumar Pani, Akash Gaurav Singh, Chhaya Devi, Kamlesh Verma and Prashant Sharma ()
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Pankaj Thakur: Chaudhary Charan Singh National Institute of Agricultural Marketing (CCS NIAM), Jaipur 302033, India
Piyush Mehta: Department of Business Management, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India
Priyanka Lal: Department of Agricultural Economics and Extension, School of Agriculture, Lovely Professional University, Phagwara 144411, India
Rashmi Chaudhary: Department of Business Management, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India
Saswat Kumar Pani: Agribusiness and Innovation Platform, International Crops Research Institute for the Semi-Arid Tropics, Patancheru 502324, India
Akash Gaurav Singh: Department of Genetics and Plant Breeding, Acharya Narendra Deva University of Agriculture & Technology, Ayodhya 224229, India
Chhaya Devi: Department of Humanities and Social Sciences, National Institute of Technology, Hamirpur 177005, India
Kamlesh Verma: ICAR-Central Soil Salinity Research Institute, Karnal 132001, India
Prashant Sharma: Department of Silviculture and Agroforestry, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Solan 173230, India

Economies, 2024, vol. 12, issue 1, 1-21

Abstract: Vegetables are important for both nutritional and economic stability and contribute significantly to the agricultural landscape of India. The demand for vegetables is rising, driven by population growth and increased awareness of their benefits. This empirical study highlights the dynamics of agricultural production supply chain networks of capsicum crops in the northwestern Himalayan region, specifically Himachal Pradesh, India. The study employs the Acharya approach to analyse the various marketing channels utilized by farmers in the capsicum supply chain. This methodology sheds light on the economic nuances at each stage and examines marketing channels, costs, margins, price spread and marketing efficiency. Simultaneously, the Garrett ranking method is applied to discern and prioritize constraints faced by farmers. This comprehensive approach ensures a nuanced understanding of the economic and logistical intricacies of capsicum marketing. The analysis of marketing channels reveals five distinct pathways employed by farmers, with Channel-C (Producer–Commission Agent–Retailer–Consumer) standing out as the most dominant, representing 47.25% of the total quantity. Moreover, Channel-A (Producer–Consumer) proves to be the most cost-effective for producers and boasts the highest producer price, while Channel-C, involving commission agents, incurs higher costs. This suggests a preference for intermediaries, emphasizing factors like market access and negotiation skills, whereas Channel-D (Producer–Local Trader–Wholesaler–Retailer–Consumer) has the highest gross marketing margin, emphasizing the trade-offs between efficiency and transaction volume. The results indicate that while Channel-A is the most efficient, it is not the preferred choice due to the lower transaction quantity. Further, the absence of market consultation services, inadequate road infrastructure, high commission charges, nonremunerative prices and untimely availability of vehicles are the major constraints in marketing. The findings of the study call for targeted interventions to create a more robust and farmer-friendly marketing environment for capsicum crops in the region. The study proposes targeted recommendations, emphasizing collaborative efforts between stakeholders, government bodies and farmers. This research contributes to the academic discourse and also offers actionable insights for researchers and policymakers, fostering sustainability, profitability and equity within the capsicum supply chain.

Keywords: supply chain; marketing channel; performance; efficiency; logistics; marketing constraints (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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