International Journal of Agriculture Extension and Social Development
2025, Vol. 8, Special Issue 1
A study of marketing cost, marketing margin, price spread and marketing efficiency for different channels of potato in Gujarat
Harshkumar D Patel and RS Pundir
This study investigates the marketing efficiency and value chain dynamics of potato production in Gujarat, focusing on processed products such as French fries, chips, flakes, and aloo tikki. Utilizing multistage sampling, data was gathered from 200 contract farmers, intermediaries, and processors. The research aimed to assess marketing costs, margins, price spread, and efficiency across eight identified marketing channels. Findings revealed that potato marketing in Gujarat is characterized by significant inefficiencies, with producers retaining a small share of the final consumer price, often below 10 percent. High marketing costs arise from labour-intensive processes, inadequate cold chain infrastructure, and reliance on multiple intermediaries. Channels involving processed products, particularly flakes and aloo tikki, exhibit the highest costs and lowest producer benefits due to the complexity of operations and logistical challenges. Conversely, channels for chips demonstrated relatively higher marketing efficiency. The study underscores the critical need for streamlining the potato supply chain through enhanced cold storage, efficient transportation systems, and reduced intermediary involvement. Promoting direct market access and implementing transparent pricing mechanisms can boost producers’ profitability and encourage sustainable practices. These improvements would not only enhance the livelihood of farmers but also strengthen Gujarat’s potato value chain, contributing to the broader agricultural economy. The findings have implications for policy-making and strategic planning in agricultural marketing systems.
Harshkumar D Patel, RS Pundir. A study of marketing cost, marketing margin, price spread and marketing efficiency for different channels of potato in Gujarat. Int J Agric Extension Social Dev 2025;8(1S):01-09. DOI: 10.33545/26180723.2025.v8.i1Sa.1492