Betel Vine Marketing in Tamil Nadu, India: Price Spread Analysis

Tamil Nadu is one the leading betel leaf cultivating states in the country. Besides, it faces significant challenges in producing betel vines due to risk of pests and diseases. These risks have a negative impact on the farm economy. Disease outbreaks can be incredibly concerning and have an impact on a company's profitability. The higher labour costs, pest and disease and natural calamities have made it difficult for farmers to produce their crops. Therefore, it was essential to study the marketing cost, price spread and marketing efficiency of betel vine in Tamil Nadu. The use of a well-structured interview schedule allowed for the collection of information from farmers regarding the cost and return of producing betel vines. From the local marketplaces in Thanjavur District, village traders, commission agents, wholesalers and retailers were chosen. Price spread and marketing efficiency were used to know about the marketing cost and the price received by the farmer. The efficient marketing channel was channel III (Producer → Retailer → Consumer) because it has the lowest price spread of 18.9 per cent which be due to a smaller number of intermediaries. The marketing efficiency in channel III (16.1) was higher than in channel I (10.6) and channel II (6.3) respectively. Thus, marketing of betel leaf in channel III was more efficient for farmers.