Marketing channel assessment of natural rubber: Insights from Kanyakumari district, Tamil Nadu

Abstract

The study investigates the marketing dynamics of natural rubber in Kanyakumari district, Tamil Nadu, a traditional region for rubber cultivation in India. Utilizing a multistage random sampling method, data were collected from 150 respondents, including 120 rubber growers and 30 intermediaries, through structured questionnaires and personal interviews conducted between November 2023 and August 2024. The research aims to map the value chain of natural rubber, analyze marketing costs, margins, and price spreads, and identify production and marketing constraints faced by farmers. The findings revealed four primary marketing channels: direct sales to primary dealers, rubber producer societies, collection agents, and processing units. Each channel exhibited distinct marketing costs and efficiencies; notably, channels involving direct sales to dealers were more cost-effective for producers compared to those utilizing collection agents. However, intermediaries achieved higher margins in the latter. Key constraints identified include adverse weather conditions, fragmented landholdings, high production costs, lack of government subsidies, and inadequate access to technology. Marketing challenges such as poor standardization and grading practices exacerbate price volatility and reduce farmers' earnings. The study emphasized the need for improved marketing strategies and infrastructure to enhance the profitability of smallholder rubber farmers. By addressing these constraints through targeted interventions, stakeholders could foster a more sustainable and economically viable natural rubber sector in Kanyakumari district, ultimately benefiting the livelihoods of thousands reliant on this critical agricultural industry.