Transcript Marketing Channel for Banana

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Marketing Channel for Banana
Introduction
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India continues to rank as the second largest producer of fruits in the world.
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Banana is one of the important fruits in India and occupies about 4.24 lakh
hectares (10.49 per cent in world share) with a production of about 121.05
lakh tonnes (17.44 per cent in world share) in 2005-06.
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The main varieties of banana are Dwarf Cavendish, Rasthali, Robusta, Povan,
Nendran, Karpuravalli and Sevvazhai. Export of Banana is less than 10 % of
production
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The major banana producing states are Maharashtra, Kerala, Tamil Nadu,
Gujarat, Assam, Andhra Pradesh and Karnataka
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Banana is exported to Middle East, Gulf, Russia, Ukraine and other European
countries from India.
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Marketing Channel for Banana
Marketing Practices of Banana
Assembling
Harvesting and assembling the produce for the market is done by
• Growers
• Pre-harvest contractors
• Village merchants
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Marketing Channel for Banana
Growers or Producers
Banana growers in South India are mainly marginal farmers who do
not find it profitable to harvest the crop at periodical intervals and
transport to markets as the bunches usually do not attain harvestable
maturity uniformly due to variation in sucker size and variation in
fertlisation, irrigation.
The grower's share in assembling of the produce will be only upto
10 per cent in India.
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Marketing Channel for Banana
Pre-harvest contractors
Pre-harvest contractors are the main assembling agents in the case of
bananas.
They conduct periodical visits to the banana garden of individual
small holdings and enter into contract with these farmers by
advancing money to purchase the bunches.
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Marketing Channel for Banana
Village Merchant
Village merchant accounts for about 10 per cent of the total produce
assembled.
These merchants operate in villages near about shandies.
These merchants collect the produce and then have it sold at
shandies.
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Marketing Channel for Banana
Sorting
Sorting of bunches/fingers into different grades and marketing are not
practiced in India by the growers.
Even at the assembling centres, disposal is as bunches and as such no
sorting is resorted .
At the retail level only, fruits are sorted according to different sizes.
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Marketing Channel for Banana
Packing
In India the bunches are marketed naked.
There is no practice of using any special type of containers.
The bunches are as such loaded or unloaded from the carts, lorries or
rail wagons.
When the produce is to be sent to far off places, through lorry, the
individual bunches are packed with banana waste leaves which served
as cushion in between the bunches and consequently the damage to
the fingers during transit is reduced.
There is no unit of packing as transport and sales are effected on the
basis of number of bunches
In the case of hill bananas, the bunches after harvest are split up into
different hands possibly due to easiness of transport on mule or ponies.
Hill bananas are, packed in gunny bags each having a capacity of 400
to 600 fruits. If the fruits are to be transported over a long distance,
generally no packing is undertaken and the fruits are sent in loose form.
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Marketing Channel for Banana
Transportation
The harvested bananas from the gardens located in villages are
usually transported as head loads, on ponies, as cart loads and as
lorry loads, the transport for interstate trade are mainly effected
through lorry services and railway wagons.
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Marketing Channel for Banana
Various type of marketing channel marketing channel
For banana commonly five types of marketing
channels was identified based on the distance.
Local Sale Marketing Channel
PRODUCER
FRUIT VENDORS
CONSUMER
Distance Marketing Channels - Marketing Channel I
WHOLE SALER
PRODUCER
RETAILER
CONSUMER
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Marketing Channel for Banana
Marketing Channel II
PRODUCER
RETAILER
Whole saler
CONSUMER
Marketing Channel II
VILLAGE
MERCHANT
PRODUCER
RETAILER
CONSUMER
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Marketing Channel for Banana
Contract Marketing - Contract Marketing Channel I
PRODUCER
PRE HARVEST
CONTRACTER
RETAILER
CONSUMER
Contract Marketing Channel II
PRODUCER
PRE HARVEST
CONTRACTER
COMMISION
AGENT
CONSUMER
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RETAILER
Marketing Channel for Banana
High Distance Marketing Channel
PRODUCER
COMMISION AGENT/
TRADER
CONSUMER
PRIMARY WHOLE
SALER
SECONDARY
WHOLE SALER
SECONDARY
WHOLE SALER
Modern Marketing Channel
PRODUCER
PROCUREMENT
AGENCIES
RIPENING /
STORAGE
RETAIL OUTLETS
CONSUMER
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Marketing Channel for Banana
Constraints in Banana Marketing
High fluctuations in prices (400%)
High winds during monsoon causing damage to the plants.
Absence of institutional credit.
Absence of crop insurance
Small production and uneconomic quantities available for marketing
Long association with contractors.
Price discrimination in the markets.
Non-institutional agencies and undesirable market practices in the
markets.
Deduction of 2 bunches for every 100 bunches as Profit bunches.
Combining two small bunches as one bunch during counting for price
fixing.
Non-harvest of small size bunches.
Delay in payment of balance amount after harvest
Violation of contracts i.e. abandoning the harvest if there is slump in
prices.
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Marketing Channel for Banana
Let us Sum Up
• Banana stands second next only to mango in area and production
among fruit crops in India.
• The major banana producing states are Maharashtra, Kerala, Tamil
Nadu, Gujarat, Assam, Andhra Pradesh and Karnataka.
• More than 40 per cent of production being in Southern States
Marketing system for bananas is not well organized in India and
hence, the produce suffers losses in quality and quantity before it
reaches the consumers. There is no institutional channel for banana
marketing.
• Contract marketing is very common and contract between producers
and pre harvest contractors at a fixed price and it reduce the price risk
of farmers.
• In high distance marketing more number of intermediaries involved in
the marketing channel.
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