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<p>Efficient agricultural marketing is essential for converting farm output into income for farmers, particularly for perishable crops like potatoes. Understanding the performance of alternative marketing channels is essential for improving farmer welfare in potato-growing regions, particularly under India’s One District One Product (ODOP) initiative. This study evaluates the efficiency of four marketing channels operating in Una district of Himachal Pradesh: Channel I (Producer → Commission Agent → Wholesaler → Retailer → Consumer), Channel II (Producer → Local Trader → Wholesaler → Retailer → Consumer), Channel III (Producer → Processor/PepsiCo Company → Retailer → Consumer), and Channel IV (Producer → Retailer → Consumer). These channels were identified through extensive field mapping, preliminary interviews, and a multistage sampling survey involving 150 farmers and key intermediaries across the district. Marketing costs, margins, and producer share were computed using the Acharya-Agarwal model, while a multinomial logit (MNL) framework was employed to analyse determinants of farmers’ channel choice. Results indicate substantial heterogeneity in performance across channels. Channel IV recorded the highest producer share (84.07%) and lowest marketing cost, confirming the efficiency advantages of short supply chains. Although Channel III appeared less efficient in aggregate metrics, further examination revealed that it is highly efficient at the raw potato procurement stage but incurs higher total marketing costs after processing into value-added products such as chips and crisps. The MNL model shows that marketable surplus, payment reliability, buyer relationship, and distance to market significantly influence channel choice decisions. The study highlights the need for targeted interventions to enhance payment transparency, strengthen FPO- and SHG-led direct marketing, and improve logistical coordination in contract-farming systems. Findings contribute to a more nuanced understanding of value-chain modernization by distinguishing procurement efficiency from processed-product cost structures within the ODOP framework.</p>

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Marketing Performance and Factors Influencing Farmers’ Choice for Agricultural Output Marketing Channels: The Case of Potato (Solanum tuberosum) in India

  • 期刊论文

  • 发表日期：

    2026年4月16日

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  • Jasmeet Kaur,
  • Abinayarajam D.,
  • Rakesh Singh

摘要

Efficient agricultural marketing is essential for converting farm output into income for farmers, particularly for perishable crops like potatoes. Understanding the performance of alternative marketing channels is essential for improving farmer welfare in potato-growing regions, particularly under India’s One District One Product (ODOP) initiative. This study evaluates the efficiency of four marketing channels operating in Una district of Himachal Pradesh: Channel I (Producer → Commission Agent → Wholesaler → Retailer → Consumer), Channel II (Producer → Local Trader → Wholesaler → Retailer → Consumer), Channel III (Producer → Processor/PepsiCo Company → Retailer → Consumer), and Channel IV (Producer → Retailer → Consumer). These channels were identified through extensive field mapping, preliminary interviews, and a multistage sampling survey involving 150 farmers and key intermediaries across the district. Marketing costs, margins, and producer share were computed using the Acharya-Agarwal model, while a multinomial logit (MNL) framework was employed to analyse determinants of farmers’ channel choice. Results indicate substantial heterogeneity in performance across channels. Channel IV recorded the highest producer share (84.07%) and lowest marketing cost, confirming the efficiency advantages of short supply chains. Although Channel III appeared less efficient in aggregate metrics, further examination revealed that it is highly efficient at the raw potato procurement stage but incurs higher total marketing costs after processing into value-added products such as chips and crisps. The MNL model shows that marketable surplus, payment reliability, buyer relationship, and distance to market significantly influence channel choice decisions. The study highlights the need for targeted interventions to enhance payment transparency, strengthen FPO- and SHG-led direct marketing, and improve logistical coordination in contract-farming systems. Findings contribute to a more nuanced understanding of value-chain modernization by distinguishing procurement efficiency from processed-product cost structures within the ODOP framework.