Economics of production and marketing of tomato and cabbage in the Ukhrul district of Manipur

Abstract

The marketing effectiveness of tomato and cabbage in the Ukhrul District of Manipur was evaluated using Acharya’s modified marketing efficiency approach, with a focus on identifying the key factors influencing marketing efficiency. The economic viability of tomato and cabbage production in the state was also analyzed. The per quintal production costs of tomatoes and cabbage were found to be Rs. 219.36 and Rs. 249.31 respectively, with benefit-cost ratios of 5.76 and 2.30 respectively. Due to the perishable nature of tomatoes and cabbage, combined with limited processing and storage infrastructure, insufficient knowledge among stakeholders and the presence of numerous intermediaries, significant price fluctuations were observed, which negatively impacted both the farmers and consumers. Most tomatoes were sold through Channel 1 (Producer-Retailer-Consumer), while cabbage was mainly marketed via Channel 3 (Producer-Wholesaler-Retailer-Consumer). Marketing costs and margins varied with the length of the distribution channel; more extended channels led to higher costs and wider price spreads. As the number of intermediaries increased, both the consumer price and marketing margin rose, reducing overall marketing efficiency. Factors such as transportation, market price, marketing margin and volume significantly influenced efficiency. The highest efficiency was found in the direct channel from farmers to retailers to consumers. Developing a dedicated farmers' market model with essential infrastructure, such as storage, weighing systems, water, electricity and shelter, could streamline the supply chain, reduce costs and improve overall market performance by minimizing intermediary roles.