A Study of Post-Harvest Losses of Banana (Musa paradisiaca
185
A Study of Post-Harvest Losses of Banana ( Musa paradisiaca) Cultivation and its Marketing in District Durg of Chhattisgarh - An Economic Analysis THESIS Submitted in partial fulfillment of the requirements for the award of the degree of Doctor of Philosophy in Agribusiness Management by ARCHIT KUMAR NAYAK 2018 DEPARTMENT OF AGRICULTURAL ECONOMICS NAINI AGRICULTURE INSTITUTE SAM HIGGINBOTTOM UNIVERSITY OF AGRICULTURE, TECHNOLOGY AND SCIENCES, ALLAHABAD - 211 007, U.P., INDIA [ID. No. 15PHAEABM207]
A Study of Post-Harvest Losses of Banana (Musa paradisiaca
Cultivation and its Marketing in District Durg of Chhattisgarh -
An
Economic Analysis
THESIS
Submitted in partial fulfillment of the requirements for the award
of the degree
of
TECHNOLOGY AND SCIENCES, ALLAHABAD - 211 007, U.P., INDIA
[ID. No. 15PHAEABM207]
ACKNOWLEDGEMENT
I bow down before almighty God the omnipotent, omnipresent and
omniscient for showing his blessing,
mercy and strength. Without his blessings, this task would have
remained a mere dream.
It is my pleasure to glance back and recall the path I travelled
during the days of hard work and
perseverance. This thesis is the result of three years of rigorous
work whereby I have been accompanied, supported
and guided by many people.
Although this task is the present efforts of mine, yet there are a
several persons whose sincere co-
operation during the entire period of his research is worth to be
mentioned. I deem it a proud privilege to get a
much long opportunity to my noble, able and considerate Advisor
Prof. (Dr.) Nahar Singh Professor and Head,
Department of Agricultural Economics, Sam Higginbottom University
of Agriculture Technology and Sciences,
Allahabad. His soft and sober attitude, guidance, whole-hearted
encouragement, innovative suggestion,
constructive criticism and conviction of purpose led this uphill
task to its successful completion and shall be a
lifelong gifted memory for me.
I greatly acknowledge the judicious impeccable and benevolent
guidance, invaluable suggestion and
constant encouragement during of this work from Dr. Dinesh Kumar
(Co-Advisor) Associate Professor,
Department of Agricultural Economics, Sam Higginbottom University
of Agriculture Technology and Sciences,
Allahabad.
I would like to thank the chairman of my advisory committee for
synopsis presentation Prof.(Dr.) J.P.
Srivastava, Department of agricultural extension, SHUATS,
Allahabad. I feel no words to express my heartfelt
gratitude and respect to his kindness.
My sincere and heartfelt thanks, to Prof. (Dr.) VM Prasad, (Member)
Professor, Department of
Horticulture, Sam Higginbottom University of Agriculture Technology
and Sciences, Allahabad, who provided
me timely guidance and encouragement to fulfill the project and
extended every possible help.
I also owe my sincere thanks to Dr. Anupriya Paul, (Member)
Assistant Professor, Department of
Mathematics and Statistics, Sam Higginbottom University of
Agriculture Technology and Sciences, Allahabad,
for her constructive guidance and support.
With immense pleasure and deep respect, a profound sense of
gratitude and heartful thanks to to all
teachers of the Dept. of Agricultural Economics, Dr. Ashish S.
Noel, Dr. Sanjay Kumar, Mr. Nitin Barker, Dr.
A.J. Stephen and Mr. Jayant Zechariah.
What is the cherished most, is the help, love, affection,
encouragement and blessing to walk on the right
path which I got from my honorable, loving and caring mother Smt.
Kanta Nayak , my dearest and honourable
father Dr. Ashok Kumar Nayak and my very supporting, loving and
caring brother Dr. Amit Nayak and all
family members, who have prayed for me day and night, in helping me
tide over those moments of anxiety and
despair and providing me extensive and continuous moral support
during the study period.
I would like to thank the chairman of my advisory committee for the
final viva-voce presentation Prof.
(Dr.) P. J. George, Director, CHRD, SHUATS, Allahabad for his
valuable suggestions and advice. I feel no
words to express my heart full gratitude and respect for his
kindness.
I can never forget the help and support of Staff of the Department
of Agricultural Economics &
Agribusiness Management, SHIATS, Allahabad, especially Mr.Lalit
John, Vinod, Manoj and Shiv kumar and
I express my sincere thanks to them.
Last but not the least I extend my gratitude to all the people who
have helped, supported and encouraged
me in many ways for the completion of my doctoral degree
programme.
Place: Allahabad
3 PROFILE OF STUDY AREA 53-68
4 MATERIALS AND METHODS 69-83
5 RESULTS AND DISCUSSIONS 84-127
6 SUMMARY AND CONCLUSION 128-139
BIBLIOGRAPHY 140-153
APPENDIX i-x
1.1 Area, production and productivity of Banana among
total fruits (India)
2014-15)
6
world
8
1.4 State wise area, production and productivity of Banana 9
1.5 Area, Production and productivity statistics of banana in
Chhattisgarh
12
3.1 Distribution of land holding in Durg district in 2010-11
55
3.2 Land use pattern in Durg district 56
3.3 Area, Production and productivity of field crops in the
Durg district
3.5 Total area and production of horticultural crops in Durg
district
60
3.6 Area and Production of Fruit crops in Durg district 61
3.7 Area and Production of Vegetable crops in Durg district
62
3.8 Area and Production of Spices crops in Durg district 63
3.9 Area and Production of Flower crops in Durg district 64
3.10 Livestock position in Durg district 65
3.11 Socio-economic indicators of Dhamdha block and Durg
district
66
4.1 District wise area and production of Banana in the
Chhattisgarh (2015-16)
70
4.2 Area and production of Banana in three blocks of Durg
district
71
categories in sampled villages.
in different size of farms group
85
different size of farm families
86
size of farm groups
growers in different size of farm groups
88
growers in different size of farm groups
88
5.7 Level of Achievement Motivation of the banana growers 91
5.8 Level of Decision Making ability of the banana growers 92
5.9 Level of Ability to coordinate of the banana growers 93
5.10 Level of Risk Taking Ability of the banana growers 94
5.11 Level of Knowledge possession of the banana growers 94
5.12 Level of Information seeking of the banana growers 96
5.13 Level of Assistance of Management services of the
banana growers
5.16 Overall Entrepreneurial Behaviour of the banana
growers
100
growers
100
5.18 Marketable surplus of Banana Per farm in different Size
of Farms Group
in different Sizes of Farm Groups
107
channel I
channel II
channel III
Channel IV
114
5.24 Price spread and Producer’s share in consumer’s rupee
under different marketing channels of Banana
116
Durg district
5.27 Post-harvest losses in banana at Wholesale market level
120
5.28 Post-harvest loss in banana at retail level 121
5.29 Constraints in Production of Banana in different Size of
Farms Group
5.30 Constraints in marketing of Banana in different Size of
Farms Group
1.1 Trend of Banana Production in India. 11
1.2 Fruit Production in Chhattisgarh 12
3.1 Map of Durg District 68
LIST OF ABBREVIATIONS
e.g. : For example
FYM : Farmyard manure
Cultivation and its Marketing in District Durg of Chhattisgarh -
An
Economic Analysis
2018 Advisor
ABSTRACT
Horticulture has aroused as a major agricultural enterprise in
accelerating the pace
of the economy. This study was conducted to determine the present
status of postharvest
handling including loss assessment and marketing of banana and to
identify the constraints
relating to postharvest management and marketing of banana and to
make probable
suggestions for addressing the identified constraints. The study
was conducted in Dhamdha
block of Durg district of Chhattisgarh in the year 2017. A sample
of 132 banana growers
were selected for the collection of primary data and the data was
collected by personal
interview method using a well-organized schedule. The results
revealed that more than half
(58.33%) of the respondents belonged to medium entrepreneurial
behaviour category. In
entrepreneurial qualities, majority of the banana growers were
found to have medium level
of innovativeness, decision making ability, low leadership ability
and knowledge
possession. Four channels were identified in Banana marketing in
the Durg district viz.,
Channel-I (Producers→ Consumers), Channel II
(Producers→Retailers→
Consumers),Channel-III (Producers → Wholesalers → Retailers →
Consumers), Channel-
IV (Producers→ Commission agents → Wholesalers →Retailers →
Consumers). Majority
of the banana growers in the study area preferred channel-III
followed by channel-IV and
channel II and channel I. Producer’s share in consumer rupee was
worked out to be 94.40
per cent in channel I, 51.76 per cent in channel II, 39.92 per cent
in channel III and 35.84
per cent in channel IV. The price spread in this channel IV was
highest (Rs. 1796.60 per
quintal) followed by Rs. 1682.40 per quintal in channel III, Rs.
1206.00 in channel II and
Rs. 112.00 per quintal in channel I. The marketing efficiency
channel I was found to be
highest (16.85 %) compared to 1.07 per cent in channel II, 0.66 in
channel III and 0.55 per
cent in channel IV. It was noticed that higher the number of market
intermediaries in this
chain, lesser the producer’s price because of rise in marketing
cost and the margins. The
assessment of post-harvest losses at three levels of marketing viz.
farm level, wholesale
market level and retail level revealed that maximum loss occurred
at wholesale market
level (51.00 %) followed by farm level loss (39.52%) and retailer
level loss (37.95 %). It
is found that small and immature fruits was found to be the major
cause of post-harvest
losses at farm level whereas the physiological weight loss due to
drying of the fruit during
transportation was the major cause for the losses at the wholesale
transit level and the
physically damaged fruit were the major cause at retail level. The
major constraints faced
by banana growers in the marketing of Banana was found to be high
fluctuations in price
followed by low prices at the time of harvest while major
constraint identified in production
was destruction of crop by heavy winds followed by non-availability
of improved variety
of suckers.
efficiency, Post-harvest losses.
The horticultural crops viz., fruits, vegetables, plantation crops,
medicinal
crops, ornamental crops and mushrooms plays a vital part in
improving health, food,
livelihood and nutrional security. It has played a vital part in
the nation’s poverty
alleviation, country's nutritional security and employment
generation programmes
over the years. Horticulture has aroused as a major agricultural
enterprise in
accelerating the pace of the economy. This sector not only provides
abundant scope
for supporting wide range of agro based industries generating ample
employment
opportunities but also presents myriad options for income
diversification to the
farmers. While agriculture, considered as the strength of Indian
economy, with a share
of about 15 per cent to the country’s GDP and employment provider
to around 58 per
cent of its total population, the horticultural sector contributes
to about 30 per cent in
agricultural GDP from about 14 per cent of total area under
horticultural crops and
contribution of about 40 per cent of the total agriculture export
earnings besides its
share of nearly 20 per cent in total agricultural labour force.
Thus, operation and
cultivation of horticultural crops continues to play a fundamental
role in raising
prosperity of our nation apart from linked health and fortunes of
its people (Vision
2050 IIHR, 2014). It is vividly clear that, for the 4 per cent
annual growth in the
economy of Indian agriculture, the horticultural sector needs to
grow at 8 per cent
annually to encounter the growing demand for food. There is a
growing consciousness
about the benefits and gains of the horticultural crops which is
certain to leap with the
rise in socioeconomic status of the people.
As a consequence of technology, research and policy initiatives,
India
continues to be the II largest producer of fruits and vegetables
with a share of about
13.6 per cent and 14 per cent to the worldwide fruits and
vegetables production
respectively. Due to its significant share in the worldwide
horticultural production,
India is very well recognized as fruits and vegetable basket of the
world. India’s
varied climatic and physic-geographical conditions ensures
availability of all kinds of
INTRODUCTION 2
horticultural crops such as fresh fruits and vegetables, spices,
nuts, flowers and
plantation crops (cocoa, cashew nut and coconut). As per the NHB
database (2016-
17) India produced about 92.8 million tons of fruits and 175
million tons of
vegetables with 6.40 million hectares and 10.30 million hectares
land under fruits and
vegetables cultivation, respectively. India is the largest producer
of mango (45%),
bananas (29%), papaya (37%), pomegranate, sapota and acid lime
beside recording
highest productivity in grapes (21.6 t/ha) in the world (Anonymous,
2015). The vast
production base offers India tremendous opportunities for export.
Export of fruits
from India during FY 2015-16 was pegged at Rs. 3,524.50 crores and
export of
vegetables was of 4,866.91 crores. Bananas, Mangoes, pomegranates,
grapes and
walnuts accounted for major share of fruits export while Potatoes,
green chillies, okra,
bitter gourd and onions were major vegetables exported from India.
Bangladesh,
Nepal, Sri Lanka, UAE, Qatar, Malaysia and UK remained the top
destination
countries for the Indian fruit and vegetables (APEDA, 2017).
Though, the
contribution of India in global market is nearly about 1 per cent
but this is certain to
go up with the growing acceptance of India’s horticulture produce
in the world.
Mango and banana accounted for around 55 per cent of total fruit
production among
fruits in both the consecutive years (2013-14 and 2014-15) with
alone 33 per cent of
banana production. Among vegetable crops, major share in production
was occupied
by potato (26 %), Tomato and onion (8 %) and brinjal (8 %) in the
year 2014-15. The
state wise production of fruit crops in India states that
Maharashtra has the major (12
%) share followed by U.P. (10 %) while Telangana, Karnataka, Tamil
Nadu, MP and
Gujarat each contributed 5 per cent in total fruit production in
the country during
2014-15 and these 8 states accounted for around 70 per cent of the
total area under
cultivation of fruits (MOSPI, Annual Report 2016).
Though, India ranks second in the global fruit production scenario,
there are
numerous challenges encountered in the production and marketing of
horticultural
crops. Amongst which, the first and the foremost challenge is its
lesser productivity in
comparison to developed countries like U.S.A and Brazil. The
productivity of India in
the case of fruits and vegetables (14.33 & 17.01 tons per
hectare respectively) is about
half the productivity of U.S.A. which is 23.3 and 32.5 tons per
hectare. Second major
challenge is that the Indian horticulture sector is described by
its small and scattered
INTRODUCTION 3
farms having low yield per hectare coupled with enormous
post-harvest losses, on
account of outdated cultivation and post-harvest management
practices. It is evident
by the findings of the study by YES bank that the countries in
North America and
Europe stored 85 per cent of their horticultural produce in
temperature-controlled
conditions whereas India has only 2 per cent of its horticulture
produce stored in
temperature-controlled conditions. In India, 30-40 per cent of the
horticultural
produce is wasted prior to consumption because of inadequate cold
storage facilities
which is presently available for just 10 per cent of the annual
horticultural production.
In addition to that, the biggest wastage occurs during the
transportation of horticulture
products from the farm gate to consumer as a horticulture product
have to pass
through seven different distribution channels within which there
was a loss of 5-7 per
cent in each step, as per the report by National Centre for Cold
Chain Development.
There are huge processing losses that also poses a considerable
challenge. The present
status of processing in India is still around 4.6 per cent of the
total produce, in
comparison to China (30 %), U.S.A. (65%) and Philippines (78 %).
(Halde, 2014).
Further, the Indian food processing industry is dominated by small
and medium
enterprises, which lacks the required capacity to assume
large-scale fruits and
vegetables processing.
The above challenges in the Indian horticultural sector are further
aggravated
are by the acute lack of market infrastructure, which are not that
well developed in
the fruits and vegetables markets as it is developed for food grain
markets. Lack of
generalized infrastructure such as ripening chambers, cool chains
refer vans and cold
storages, etc. coupled with existence of large number of
unorganized middleman leads
to inefficient and unorganized supply chain practices. This further
results in colossal
post-harvest wastages of nearly thirty per cent in addition to the
less remuneration to
the farmers. In particular Banana crop, the Post-harvest losses
causes around 20-80
per cent of the total production (Kumar et. al. 2006). However, the
persistent
challenge is doubling the present production of fruits and
vegetables to around 500
million tons by 2050 from present 295.2 million tonnes (2016-17) in
order to
encounter the rising demand for horticultural crops due to enhanced
purchasing
power, rapid urbanization, changing life style and food habits,
awareness about health
benefits etc. The per capita availability of vegetables and fruits,
though improved over
INTRODUCTION 4
the years, is still below the recommended levels and hence, the
nutritional and health
security can be achieved only by enhanced productivity. In this
context, it is
imperative to evolve innovative technologies for enhancing
productivity in
horticultural crops through intensive efforts in research,
development and extension
activities. The present challenges in the horticultural sector can
be well met by
integrating the Indian food supply chain with the global retail
chains by bringing
Foreign Direct Investment in Indian retail industry which can
mitigate some of these
problems. The consequent entry of international retail chains would
further strengthen
the much needed processing facilities with storage capabilities
thereby curtailing
wastages in the supply chain and aiding the farmers and the
consumers through a
more systematic and coordinated approach besides bringing economy
of scale in
operations.
1.2 IMPORTANCE OF BANANA IN THE INDIAN ECONOMY
Banana (Musa paradisica L.) is an essential horticultural crop. In
respect to
area and production, its share is recognizable in horticulture
sector. Banana comes
under the family Musaceae. It is placed in fifth position in the
world’s agricultural
commodity trade after and cocoa, coffee, sugar and cereals. It is
also considered as the
fourth major fruit crop in terms of economic value after rice,
wheat and milk. It is
very delicious, highly nutritious and also an opulent and cheapest
source of energy
(104 calories/100gram). Southeast Asia is the likely origin of
Banana. The advantage
of this fruit is its availability round the year. Table 1.1 shows
the per centage share of
banana with regard to area, production and productivity of the
total fruits cultivated in
India. Area under banana cultivation in proportion to total area
under fruits increased
from 11.62 to 13.49 per cent in the period 2001-02 and 2016-17
respectively. The
proportion of the production of banana with regard to the country’s
total fruits
production consistently increased from 18.12 to 32.79 per cent
during the similar
period (Table 1.1). The per centage increase in production is
explained by the per
centage increase in productivity rather than in area. Yield of
banana increased
continuously throughout the period from 16.72 to 35.43 tons per
hectare, whereas,
yield of all fruits revolved around 14.57 per cent as shown in
table 1.1.
INTRODUCTION 5
Table 1.1: Area, Production and Productivity of Banana among total
fruits
(India)
(Tonnes/ha)
2001-02 4010 466
14.57 35.43
Notes: Figures in the brackets represent per centage to total under
all fruits.
Source: NHB Database, 2016-17
The growth in export quantity and value of Banana export is
presented in
Table 1.2. It could be seen from the table 1.2 that, for the
overall period of fifteen
years (2001-02 to 2016-17), 19.14 per cent and 23.77 per cent of
growth was achieved
in banana export quantity and value, respectively. According to the
export statistics
confirmed by APEDA, total Banana export in 2016-17 was about
110871.87 tonnes
INTRODUCTION 6
with the total export value of 38,852 lakhs in rupees as against
8.009 tons and Rs.
1583.94 lakhs in 2001-02 respectively (Table 1.2).
Table 1.2: India’s Performance in Export of Banana (2001-02 to
2016-17)
Year Quantity Exported
Source: APEDA and National Horticulture Database, (NHB,
2017).
There was a sharp increase in value of exports in 2009-10 (Rs.
13025.47
lakhs) and continued to increase with certain fluctuation over the
period. This increase
in export quantity accompanied by the growth in value has led to an
upsurge in the
share of banana exported to total production which increased from
0.06 per cent to
0.22 per cent during the period 2001-02 to 2014-15. The major
export destinations of
Indian Banana are Nepal, UAE, Iran, Oman, Kuwait, Saudi Arab,
Bahrain, Qatar and
Maldives (Nayak and Singh, 2018). India in spite of its higher
production of Banana,
does not have much export volume due to huge domestic demand.
Besides this, there
INTRODUCTION 7
are several supply limitations coupled with high post-harvest
losses which reduces the
quantity of actual produce available. India is exporting banana to
43 countries across
the world and its proportion to total export is much negligible as
banana is regarded as
a vital component of fruits consumption in national markets (Verma
and Singh,
2004).
1.3 NUTRITIVE AND SOCIO ECONOMIC VALUE OF BANANA
Banana is one of the primitive fruit known to mankind and an
important
commercial tropical fruits traded globally. The term ‘Banana’ is
derived from the
Arabic word 'banan', which means finger. The origin of Banana (Musa
sp.) is South
East Asia. Banana is a valuable crop taken widely in the tropical
and sub-tropical
regions of India. It has also got great social, economic and
religious importance in the
Indian society. Owing to its varied uses and high economic gains,
Banana has been
referred as “Kalpatharu” (a plant of virtues) from 2500 B.C. Banana
is a very
widespread fruit due to its less price and high nutritious value.
Banana is utilized in a
several forms viz. feed, food, fuel, medicine and distinct
applications. It is consumed
both in fresh and cooked form both as ripe and raw fruit. Processed
banana products
such as jam, juice, jelly, chips, wine, banana puree and halwa can
be prepared from
the fruit. The soft stem of banana plant, which carries the
inflorescence is extracted by
separating the leaf are rich source of starch and have a similar
chemical composition
to that of potato. The pseudo stem of banana plant is chopped and
taken as vegetable
and cattle feed. The fibre extracted from Banana is used to make
handy items like
pots, bags and wall hangers. Fine quality paper and ropes can also
be prepared from
banana waste. The leaves of Banana are considered to be hygienic
and healthy eating
plates in many south Indian states. Banana has a worldwide demand
as a food
ingredient due to its highly nutritive food elements which are
healthy to eat and easy
to digest. Banana fruits are the major source of energy-producing
carbohydrates,
potassium, vitamin B6 and B group vitamins, vitamin C, dietary
fibre and
antioxidants and minerals such as calcium, potassium, magnesium,
sodium and
phosphorus. Bananas have no fat, cholesterol or salt and therefore
make an excellent
food, rich in nutritional substances and ideal as a snack for both
children and adults.
The nutritional value per 100 gms of banana fruit contains 104 kcal
of energy, 24.84
gms carbohydrates, among the vitamins, folates is highest with 20
mcg and among
INTRODUCTION 8
minerals it contains 5 MG of calcium. Banana powder is used as the
first baby food. It
assists in reducing the risk of heart related diseases when used
repeatedly and is
recommended for patients suffering from kidney disorders,
gastroenteritis, ulcer,
arthritis and high blood pressure. Hence, banana had been denoted
as a protective
food as it assumes great importance for providing nutritional
security for the people
1.4 BANANA PRODUCTION IN THE WORLD
At the world level, banana is stated to be grown in 130 countries.
The total
area and production of Banana at the world level was accounted as 5
million ha and
113.36 million tonnes respectively in the year 2016. India
positions first in regard to
area and production contributing about 26.87 per cent of the
world’s production.
Besides India, other main banana producing countries are China,
Philippines, Ecuador
and Brazil having percentage share of 11.64, 9.45, 8.24 and 7.65
per cent respectively,
in production of banana.
Country
Production
INTRODUCTION 9
1.5 NATIONAL SCENARIO OF BANANA PRODUCTION
Banana is the majorly produced and highly consumed fruit crop
cultivated in
India. It occupies about 860 thousand ha. (13 %) of area under
cultivation and
production of 30,447 Thousand MT. (32.49 %) (NHB, 2016). India is
the world’s
largest producer of banana, contributing around 15 per cent of the
total banana area
and around 27 per cent of the total banana production in the world
(FAO, 2016). In
India, Gujarat state has the maximum productivity of 64.70 MT /ha.
as against
national average productivity of 26.01 Mt/ha. The six important
states of Banana
production in India are Tamil Nadu (14.87 per cent) followed by
Gujarat (14.37 %),
Andhra Pradesh (12.26 %), Uttar Pradesh (10.51 %), Maharashtra
(10.38 %) and
Karnataka (8.14 %). (Table 1.4). These six states contributes more
than 50 per cent of
total production of banana in the country and covers 38.33 per cent
of the total area
under fruit cultivation in the country. Banana production in India
is rapidly increasing
year by year and it has doubled from 14209.9 thousand MT to 29163
thousand MT
during the period 2001-02 and 2016-17 (Fig 1). However the current
production of
Banana in India is highly inadequate and thus provides an enormous
scope of raising
production of banana in the country. (Gowri and Shanmugam, 2014).
India
capitalizes the opportunity in raising the production and yield of
banana which can be
enhanced with scientific production technique as stated by Jaffar
and Namasivayam
(2004).
Table 1.4: State wise statistics on area, production and
productivity of Banana
(2015-16)
(MT/Ha)
Source: NHB Database (2015)
Note: Figures in the parenthesis denotes the percentage of the
total.
INTRODUCTION 11
Source: NHB Database, 2016
1.6 BANANA PRODUCTION IN CHHATTISGARH
In Chhattisgarh, fruits occupy 236.374 thousand hectare of area and
fruits
production in the state is 2316.728 thousand metric tons. Fruit
production in
Chhattisgarh contributes 25.27 per cent of total horticultural
crops. Among fruits,
Banana plays an important role in Chhattisgarh with largest share
of 26.64 per cent of
the total fruit production in the state. According to NHB database,
2016, the total area
of banana cultivation was 25445 ha and production of Banana in the
state was 617286
MT. Banana production in the state has grown at a compound growth
rate of 37.40
per cent while area increased at the rate of 22.8 per cent during
the period 2004-05 to
2015-16 (Table 1.5). In context of cultivated area in Chhattisgarh,
Mango is having
highest area among the fruit crops followed by papaya, guava and
jackfruit while in
terms of fruit production, Banana occupies first position in
Chhattisgarh state
followed by Mango, Papaya, Guava and Jack fruit as shown in Figure
2. Banana is
being cultivated in every district of Chhattisgarh state. The major
Banana growing
district Raigarh, Raipur, Bilaspur, Durg, Mahasamund. Raigarh
district accounts for
highest banana production in the state with 76510 metric tons
production followed by
Durg and Raipur district with 51938 and 51585 Metric tonnes
respectively. With
regard to area under Banana cultivation, Bilaspur district ranks
first with 2450 ha
0
5000
10000
15000
20000
25000
30000
142091330413856
INTRODUCTION 12
followed by Raipur (2200 Ha.) and Durg district (1940 Ha.). (CG
Horticulture
Department).
Source: Indian Horticulture Database -2016.
Table 1.5: Area, Production and productivity statistics of banana
in
Chhattisgarh
(Mt./ha)
25445 69848
Production in Metric Ton and area in Hectare
Area Production
INTRODUCTION 13
1.7 MARKETING SCENARIO OF BANANA IN CHHATTISGARH
Marketing of horticultural produce poses a severe challenge due to
the explicit
nature of crop itself. Because of its high perishability,
seasonability and bulkiness,
these crops needs extraordinary consideration in providing time,
place and form
utilities which adds to the overall marketing cost. The marketing
of the horticultural
crop consist of all the activities, agencies and functions involved
in movement of the
produce from the place of production to the place of consumption.
The marketing
process involve not only the primary functions of selling and
buying but also the
preparing the produce for marketing which includes assembling,
packaging,
transportation, grading, storage, processing, retailing etc. The
number and intensity of
functions vary from crop to crop. On the other hand, the absence of
a proper
marketing plan and organizational arrangements, agro processing
facilities, which
otherwise have high potential for indigenous production is a cause
of great concern
and is a disincentive to the local growers. Efficient marketing
system plays a critical
role in getting the remunerative prices to the producers. It also
contributes to optimum
utilization of resources, increase in farm income, output
management, and
employment generation and value addition. In the existing scenario,
it is observed that
the producers do not pay required consideration to the various
components of
marketing. The producers usually spend the entire year on producing
the crop and
ends up selling the produce to the pre-harvest contractors that
results in low returns
due to less share in consumer’s rupee.
The marketing of banana is commonly carried out through the
following marketing
channels:
Consumers.
Consumers
Banana Growers tends to sell the produce at the farm gate itself
due to the
high degree of perishability in Banana. But, it would be better if
the produce be sold
in the markets having better accessibility, provided efficient
transport and
communication facilities. It is seen that banana growers sell to
post harvest
contractors at the farm level because of high risk of spoilage of
fruits during
transportation and post-harvest handling methods, no assurance of
higher prices in
markets, delay in getting payment of produce by the commission
agents in the market,
pressing need of money for immediate payments, higher
transportation cost, and lack
of the adequate market information. Banana is also sold to the
commission
agents/wholesalers in the secondary mandi or market yards or the
produce is directly
sold to the retailers and the exporters. The reasons for sale of
produce to the
commission agents/wholesalers in the market premises are because of
higher net
prices expected in the markets, in absence of contract been settled
with pre-harvest
contractors, because of no other alternative except to sell in the
market or because of
small quantities of the produce. Though, there are several problems
being faced by the
producer growers to sell the fruits in the market yards viz; high
marketing cost due to
high transportation, high commission, loading / unloading and other
charges, because
of no assurance of remunerative prices. Further, sometimes there
are chances of
delayed payment by commission agents and the unauthorized deduction
by the
commission agents. In the marketing of Banana, besides the
producers, the pre-
harvest contractors, wholesalers, and retailers also face identical
problems as
following;
(i) Risk of crop losses due to natural calamity like heavy
winds/storms, high
temperature, rains, diseases and pest etc.
(ii) Lack of infrastructural facilities like improper storage and
transportation, absence
of pack houses and lack of mechanical grading facilities, and lack
of adequate
precooling godowns in the local markets etc.
(iii) Lack of skilled labours for harvesting and post-harvest
handing mechanisms.
INTRODUCTION 15
(v) Costly packing material
In addition to the above mentioned problems faced by the channel
members in
the marketing of banana, one severe problem is the huge physical
and economic post-
harvest loss during the harvest and post-harvest stages of banana
marketing that not
only reduces the quantity of produce available to the end consumers
but also
deteriorates the quality of banana which thereby fetches low marker
value. The
physical and physiological quality loss in the produce also limit
the chances of export
of banana outside the state and abroad. The present supply chain of
banana in India is
burdened with various issues and challenges that needs to be
resolved as soon as
possible in order to benefit the producer growers as well as the
consumers with
minimal amount of wastages during the movement of the produce from
the point of
production to the point of consumption. Deliya et al. (2012),
stated that the existing
supply chain which links the producer to the end consumer, is
extremely inefficient
with many intermediaries and ill post-harvest handling of the
produce. This results is
tons of wastages as much as nearly 30 per cent of the total produce
which further
reduces the remuneration to the producers. His study confirmed that
about 25 to 30
per cent of fruits and vegetables are lost due to post harvest
losses. The post-harvest
losses in case of Banana, is estimated to be around 20-80 per cent
of the total
production (Kumar et. al. 2006). Hence there is an urgent need to
overcome these
issues that will benefit the producer farmers, government agencies,
customers and
other stakeholders in curtailing the losses and wastages that would
further increase the
price share of the producer.
1.8 STATEMENT OF THE PROBLEM
Chhattisgarh state is rich in diversity of biotic, abiotic
vegetation because of
its rich and diverse agro climatic conditions, which favours
raising of several
horticultural crops such as vegetables, flowers, medicinal crops
along with many
tropical and temperate fruits. Many new avenues has been adding to
this sector over
the past years with the increase in yield and area under
cultivation of fruits viz;
cashew, banana, mango, guava in addition to scores of vegetables.
Even though,
Chhattisgarh state has been operational in the area of horticulture
but the most crucial
INTRODUCTION 16
factor that is affecting this sector in Chhattisgarh is its low
production. The state
produces about 2.15 million tonnes quantity of various fruits of
which constitute only
0.24 per cent of national fruit production. Banana is an emerging
fruit crop in
Chhattisgarh constituting about 26.64% of the overall quantity of
fruits produced in
Chhattisgarh state but it contributes only 1.6 per cent in the
national banana
production. This is because of low yield of banana in Chhattisgarh
which is 25.73
MT/ha compared to nationwide average of 35.90 mt/ha though the
yield potential of
Chhattisgarh is 44 MT/ha. (CG horticulture department 2015).
Though, banana
cultivation forms an important business to the farmers of
Chhattisgarh, but growers of
banana in Chhattisgarh are affected by the scores of challenges and
issues in its
production and marketing. Chandrakar et. al. (2015) revealed in his
study that the
major problems faced by the growers in cultivation of banana in
Chhattisgarh was
lack of improved varieties for Banana cultivation, problem of
electricity and high
temperature during summer crop. At the same time, high fluctuations
of price, lack of
processing industry and storage facilities and absence of regulated
marketing system
was stated as the most crucial constraints faced by the growers
during marketing of
Banana. Past studies on marketing of fruits including banana has
revealed that he
marketing of banana in Indian scenario is highly dominated by the
presence of large
number of middleman/traders that not only increases the cost of
marketing thereby
reducing the producers share in price but also leads to high
post-harvest losses. (Jain
2007; Patel 2017; Halder and Pati 2011; Veena et. al. 2011). This
problem of high
dependency on the middleman during marketing of the produce is
further aggravated
by the lack of adequate and proper infrastructure for post-harvest
handling of the
produce such as cold storage and warehousing facilities, cooling
shed etc. which has
also been one of a major cause for huge physical losses during
post-harvest handing
of the produce. The problem becomes more acute if the crop is
perishable in nature
like banana. Supply chain of agricultural produce especially
perishables, continues to
be very fragmented due to the presence of numerous intermediaries.
(Narula 2011;
Sharma and Singh, 2011) According to a study on supply chain of
fruits and
vegetables conducted by global Agri-system in four metros namely
Kolkata,
Bangalore, Mumbai and New Delhi outlined that, there are around
five to six
intermediaries between the producer and the end customer that adds
up to about 60-75
per cent of the total price spread. Due to which, merely 20-25 per
cent of the
INTRODUCTION 17
consumer’s price is fetched by the farmer producer. In addition to
that, high wastage
of about 15-25% of the value is recorded due to multiple cross
handling of the
produce by different intermediaries. In context of Chhattisgarh
too, farmers depend
heavily on commission agents or village merchants to lift their
bulk produce because
of lack of regulated mandis at district and tehsil levels that
leads to unjustified
commission on purchase of produce by the trader in unregulated
mandis. Eventually,
the net return of the producer reduces considerably. Another
important problem faced
by the banana growers of our country is dearth of information
regarding the market
prices, current demand in the market, procurement of produce by
food processing
units etc. Absence of proper and timely information results in poor
realization of
prices, large quantity of losses, delay in delivery of goods in the
market place etc.
Timely and accurate information to the farmers have a significant
role in increasing
the efficiency of the supply chain due to the smooth functioning of
the supply chain in
presence of timely information (Negi et. al. 2015). There has also
been considerable
pre and post-harvest losses in the horticultural produce like
banana in Chhattisgarh
because of poor post-harvest management practices causing nearly
25- 40 per cent
loss of produce after harvesting. (State Horticulture Mission,
Raipur 2013-14).
Post-harvest losses are massive in perishable agricultural produce
like fruits and
vegetables as they are soft and tender and is most likely to spoil
soon, if proper steps
are not taken at harvesting, handling and transportation. These
physical loss in pre and
post-harvest stages not only reduces the producer’s share in
consumers’ rupees but
also reduces the availability thereby causes their prices to
escalate due to rise in unit
cost of marketing and transport.(Subhramanyam, 1986). In perishable
horticulture
crop like banana, proper transport, packaging, scientific storage
and handling
technologies are inadequate and thus, a significant quantity of
produce is wasted.
Serious losses occur because of poor infrastructural facilities,
lack of cold chain
facilities and proper packaging of the produce before
transportation, lack of technical
know-how, improper market facilities and poor management or due to
improper
handling of the produce by producer farmer, market functionaries
and the consumers.
(Kumar et. al, 2006; Murthy et. al., 2009). Therefore, it is
important that the post-
harvest handling practices should be given more attention as much
as production
practices. Previous studies has shown that the major cause of
massive post-harvest
losses in India is the lack of proper and adequate transportation
facilities.
INTRODUCTION 18
Transportation has a very crucial role in marketing of the
agricultural produce in case
of perishable food items like banana mostly because of its small
shelf life, high
perishability and bulkiness. In the absence of proper
transportation, the goods can’t
be supplied to the respective end customer in a correct quality and
time. Constraints
related to transportation are very much pronounced in India due to
unavailability of
efficient and cheap transportation mode and absence of temperature
controlled van for
the movement of the banana produce (Singh et. al. 2009: Narula et.
al. 2011). Value
addition and processing is a means to enhance the shelf life of the
food items and
decrease the losses. Fair amount of food processing would lead to
small wastage of
perishable produce. It provides an enormous opportunity to export
the processed food
products to the numerous destinations. Unfortunately, in India the
level of food
processing is alarmingly low as compared to other developed nations
like U.S.A,
Brazil, and Philippines etc. India process merely about 1-2 per
cent of total fruits and
vegetables produced plus there is a little value addition in the
produce because of lack
of processing units in the proximity area that have huge economies
of scale. (Negi et.
al. 2015; Satyanarayana 2007; Bharadwaj and Palapathy, 2008). In
India, one of
the major cause for the massive post-harvest losses is the lack of
proper post-harvest
management methods and techniques that renders the producer
helpless in reducing
the wastages. It is argued that the growers are poor in knowledge
pertaining to the use
of modern technologies that are effective and efficient. They also
have poor
knowledge about the proper management of produce at pre and
post-harvest stages of
marketing that leads to huge physical and economic losses to the
growers as well the
consumers. In the absence of proper awareness and knowledge level
of the farmer, the
supply chain of fruits and vegetables cannot become efficient since
the farmers are the
primary source of fresh agricultural produce. (Shukla et. al.,
2010; Modi et. al.,
2009). In the light of above mentioned features, it has become
necessary to investigate
the marketing of banana in order to validate and test empirically
the problems in the
present marketing system of banana in the Durg district of
Chhattisgarh, so that
proper steps could be taken to eliminate the obstacles that
restricts the overall
efficiency in the existing supply chain.
1.9 JUSTIFICATION OF THE STUDY
INTRODUCTION 19
The present study is undertaken to determine the current status of
post-harvest
handling in banana, including physical loss assessment and
marketing system of
banana along with the problems and to make possible suggestions to
address the
identified problems. Despite the prominence of banana in the
economy of
Chhattisgarh, a very few research studies have been conducted on
the marketing and
postharvest handling including loss assessment of banana. So, it is
anticipated that a
systematic in- depth study on the marketing and postharvest
handling of banana could
be imperative to improve the overall marketing process including
proper postharvest
management of this fruit crop. The progress in the production is
fairly essential but
marketing has an equivalent advantages especially in case of
commercial crop like
banana which is uprightly produced for selling in the market.
Although, there has
been multi-dimensional efforts to improve the production of banana
in the state,
however marketing and value addition have not received required
attention. The
present investigation covering the problems of both marketing and
post-harvest
handling provides a concrete platform for valuable analysis. The
present study
provides information on various supply chains for movement of
banana produce from
farmer/producers to the end consumers along with marketing cost,
profit margins and
marketing efficiency in the existing channels. The study provides
meaningful and
useful insights to the banana growers and market functionaries in
marketing under
diverse channels with respect to viability of banana marketing. The
results of analysis
of marketing efficiency and price spread would give first-hand
knowledge about the
extent of benefits accrued by the producers and other stakeholders
which will pave the
way for making improvements in the existing marketing system. The
study may also
explain the selling behavior of banana growers, its reasons and
consequences. More
particularly, the results would help the banana growers in taking
timely decision
regarding the disposal of the banana fruits considering the
features of perishability,
seasonability and the frequent fluctuations in the price received
by them. The
outcomes of the study will determine the marketing costs incurred
by the growers and
market functionaries, which influences the final prices paid by the
consumers and
bear a significant effect on the efficiency of the channels. Thus
it will be beneficial in
introducing an alternate system of marketing that operates parallel
to the present
system providing better returns on the produce with minimized cost.
This certainly
would also help in tracing out the most viable marketing channel.
The results of the
INTRODUCTION 20
study, in sum, would help the policy makers, research institutions
and associated
agencies in formulation of appropriate policies and strategies for
the betterment of
overall marketing process for banana crop. The study will also
encourage private and
public sector for establishment of value addition and processing
centres that would
lead to development of socio economic condition of banana growers
paving the way
for sustainable development of agriculture in the state and
eventually benefit the
national economy. Fostering entrepreneurship and creating and
supporting of rural
businesses is crucial for the survival and integrated development
of rural economies.
However, despite the acknowledgement that agri-entrepreneurship is
one of the
primary aspects through which economic development in rural areas
can be achieved,
a very few empirical research studies on entrepreneurial competency
of farmers is
undertaken. (Wolf et al. 2007). The present study will also analyze
the entrepreneurial
behaviour of banana growers to ascertain, whether their success or
tragedy had
anything to do with their entrepreneurial characteristics. An
appreciation of this
phenomenon may expand the conceptual understanding of farming
as
entrepreneurship and help formulate realistic agricultural
policies. In perishable
produce like banana, proper scientific storage, packaging and
handling technologies
and efficient transportation facilities are inadequate and
therefore, a significant
quantity of produce is wasted. Post-harvest losses occur at several
pre and post-
harvest stages starting from the harvesting loss till the produce
reaches the end
consumer. In post-harvest stages, major loss occurs during
transportation in the
wholesale and retail markets. Huge losses occur due to poor
post-harvest
management, poor infrastructural facilities, inappropriate market
facilities and lack of
technical know-how leading to poor handling of the produce by the
growers, market
functionaries and consumers. For that reasons, the post-harvest
practices should be
given as much importance as production practices. The present study
will estimate the
physical post-harvest losses in banana at various stages of
handling that would help in
ascertaining the degree and magnum of losses incurred and identify
the causes behind
such losses. This, in turn would help in evolving proper measures
to eliminate post-
harvest losses at various stages from point of production to point
of consumption.
Under the present situation, decrease in post-harvest losses would
help in aggregating
the availability of banana to a large extent without the need to
increase the production.
The resultant information on the magnitude of losses at different
stages is imperative
INTRODUCTION 21
not only for technologists and scientists but also useful to
industrialists, administrators
and policy makers in farming appropriate policies that can help in
decreasing the
extent of post-harvest losses in banana. The technologists and
scientists would be
directed by the findings of this study in making improvements in
the harvesting and
post-harvest technologies focused at minimizing these losses. Thus,
the present
investigation will be useful and meaningful not only to the banana
growers in Durg
district but also to market functionaries, policy makers and
government and non-
governmental institutions in improving the present system of banana
marketing
through appropriate actions and policy measures. Hence, the present
study is
conducted with the following specific objectives:
2.0 OBJECTIVES
1. To assess the entrepreneurial behaviour of sampled Banana
growers in different
size of farm groups.
2. To study the disposal pattern of Banana in different channels of
marketing in
different size of farm groups.
3. To work out the marketing cost, marketing margin and price
spread in different
channels of marketing in the study area.
4. To estimate the physical post-harvest losses at farm, wholesale
and retail levels and
to identify the causes of losses.
5. To identify the constraints faced by growers in production and
marketing of banana
and recommend suitable policy measures.
2.1 HYPOTHESES
1. Among the stages of post-harvest handling of produce, maximum
losses occur
at the farmer’s field level.
2. Marketing Loss is inversely proportional to the marketing
efficiency.
3. The producer share in consumer’s price in a channel will be less
when
marketing functionaries are more.
REVIEW OF LITERATURE
A thorough review of literature is an essential part of any
investigation as it not only
provides an idea on the work done in the past but also provides the
base for discussion
and interpretation of the results and findings. It also helps the
researcher to have a
clear and better understanding of the perspectives of the research
problem which
further facilitate the researcher in setting the hypothesis and
objectives and to
compare the findings. The present investigation deals with the
study of marketing and
post-harvest losses of banana in Durg district of Chhattisgarh.
Hence, this chapter
makes an attempt to review pertinent literature having direct and
indirect bearing on
the present study. For better clarity and comprehension, the
literature cited has been
grouped in different sections in accordance with objectives of the
study as presented
below:
2.1 Entrepreneurial characteristics of sampled Banana growers
2.2. Disposal pattern of Banana and estimation of marketing cost,
marketing margin
and price spread in Banana cultivation.
2.3. Estimation of physical post-harvest losses at farm, wholesale
and retail levels and
identification of the causes of losses.
2.4. To identify the constraints faced by growers in production and
marketing of
banana.
GROWERS
ability, information seeking, knowledge of the farming, farm
decision making,
assistance of management service, co-ordination of farm activities,
leadership ability
and cosmopoliteness.
REVIEW OF LITERATURE 23
Singh and Krishna (1994) discussed the case of a group of cotton
growers in
Andhra Pradesh to emphasise how the lack of relevant
entrepreneurial capabilities can
lead an ostensibly successful agricultural operation to tragic
failure. He also attempted
to conceptualise this perception and to analyse the entrepreneurial
characteristics of
farmers in the selected area. The results have shown that
entrepreneurship is a
necessary condition for optimum results in agriculture, relating
particularly to the
cultivation of commercial crops. In Indian agriculture, where
markets for
commodities as well as inputs are imperfect and government
intervention tends to
move the economic system further away from even sub-optimal
utilisation of
resources, the entrepreneurial capabilities of the farmer might
compensate for these
shortcomings - at least to a degree. Conversely, the lack of
entrepreneurial qualities
would only compound the constraints.
Nomesh Kumar and Narayana Swamy (2000) in their study on
entrepreneurial behaviour and socio-economic characteristics of
farmers who adopted
sustainable agriculture in India defined entrepreneurial behaviour
as a combination of
seven components viz.,innovativeness, decision making ability,
achievement
motivation, information seeking ability, risk orientation,
coordinating ability and
leadership ability
Narmatha et al. (2002) stated that innovativeness, achievement
motivation
and risk orientation were the most important components. And
further, the component
decision-making, innovativeness, management orientation, economic
motivation,
level of aspiration and risk orientation were found to be crucial
in influencing the
entrepreneurial behaviour.
Rao and Dipak De (2003) conducted a study on entrepreneurial
behaviour of
vegetable growers in Varanasi and revealed that majority (60.00%)
of the respondents
had medium entrepreneurial behaviour score while, 16.00 and 23.30
per cent
respondents had low and high entrepreneurial behaviour scores,
respectively.
Vijay Kumar et al. (2003) operationalized entrepreneurial behaviour
as the
cumulative outcome of information seeking behaviour, farm decision
making,
REVIEW OF LITERATURE 24
market orientation of respondent farmers.
Vijay Kumar et al. (2003b) in their study on entrepreneurial
behaviour of
floriculture farmers of Hyderabad operationalized entrepreneurial
behaviour as the
cumulative outcome of information seeking behaviour, farm decision
making,
leadership ability, risk orientation, innovativeness, achievement
motivation and
market orientation of respondent farmers
Chandra Mouli Pandeti (2005) studied entrepreneurial behaviour of
farmers
in Raichur district of Karnataka during 2004-05. The important
findings of the study
were: majority (39.17%) of farmers had medium entrepreneurial
behaviour. Among
categories, majority (42.50%) of small farmers had low
entrepreneurial behaviour,
while 37.50 per cent of medium farmers and 42.50 per cent of big
farmers had
medium and high entrepreneurial behaviour, respectively. A positive
and significant
relationship was observed between entrepreneurial behaviour of
farmers and their
personal, socio-economic and psychological characteristics such as
education, land
holding, annual income, social participation, mass media
participation, extension
participation, level of aspiration and adoption. The study revealed
that the most
important components of entrepreneurial behaviour were information
seeking
behaviour, innovativeness, farm decision making, assistance of
management service
and achievement motivation.
Nagesha (2005) in his study on entrepreneurial behavior of
vegetable seed
producing farmers in Haveri district of Karnataka found that
majority (68.30%) of
respondents belonged to medium entrepreneurial behaviour, whereas
17.50 per cent
were in low entrepreneurial behaviour and 14.10 per cent of
respondents were in high
entrepreneurial behaviour category.
Hendge et. al. (2007) conducted a study on entrepreneurial
behaviour of
banana growers in Nanded district of Maharashtra during 2003-04 and
observed that
most (40.84 %) of the respondents were from middle age category,
41.66 per cent
were educated upto higher secondary level. The annual income of
68.33 per cent of
the respondents was found to be medium (Rs. 43,331 – 178220) and
maximum
REVIEW OF LITERATURE 25
numbers (84.66 %) of them has farming as their primary occupation.
The land holding
of the majority of the respondents (44.16 %) was found to be medium
and they had
medium market orientation (55.84 %). Majority of them had medium
extension
contact with high social participation (60.00 %). The study also
revealed that more
than half (55.00 %) of the respondents had medium entrepreneurial
behaviour while
23.34 and 21.66 per cent of the respondents had low and high
entrepreneurial
behaviour, respectively. It was observed that education, annual
income, occupation,
market orientation, extension contact and social participation were
positively and
significantly related with entrepreneurial behaviour was found
non-significant.
Ashok Kumar Bennur (2011) studied entrepreneurial qualities and
adoption
behaviour of banana growers in Gulbarga district of North Karnataka
and revealed
that with respect to entrepreneurial qualities, majority (68.30%)
of the respondents
belonged to medium entrepreneurial qualities category. Whereas,
17.50 per cent were
in low entrepreneurial qualities category and 14.10 per cent of the
respondents were in
high entrepreneurial qualities category. The meager per centage of
farmers(14.1%) of
banana growers were in high entrepreneurial qualities this may be
due to the low
education status of the respondents (40.83%) were educated up to
high school level
and majority (60.83%) were falling under middle age category. The
study also
revealed that, education, mass media participation, extension
contact, scientific
orientation, risk orientation and achievement motivation found to
be positively and
significantly associated with entrepreneurial qualities which may
have led to the
medium entrepreneurial qualities of the banana growers including
others
entrepreneurial characteristics which was found to be medium
category like
innovativeness, economic motivation, leadership ability and
cosmopolitness.
Balasaravanan (2012) conducted a study in the Regulated Markets
of
Thanjavur district and focused on identifying entrepreneurial
characteristics among
the farmers and determines the level of entrepreneurial behavior
among the farmers.
Among them with regard to innovation it was found low among the
small and
marginal farmers. The level of leadership ability and ability to
assume risk also found
low, requiring the improvement in the entrepreneurial behavior
particularly among the
REVIEW OF LITERATURE 26
marginal farmers. The study has highlighted the need to improve
decision- making
ability among the farmers and their level of innovations in farmer
practices.
Wankhede et. al. (2012) studied entrepreneurial behaviour of
vegetable
growers in Akola district of Maharashtra state during 2012-13.
Findings of the study
revealed that majority of the respondents were found in medium
level with respect to
all the main entrepreneurial attributes of vegetable growers which
indicate the
importance and contribution of these entrepreneurial attributes in
achieving
entrepreneurship especially among vegetable growers. All the
entrepreneurial
attributes namely risk taking, hope of success, persusability,
manageability, self-
confidence, knowledgeability, persistence, feedback usage,
innovativeness, and
achievement motivation were having significant contribution in
entrepreneurial
behavior. Price fluctuation in the market, no provision of
vegetable crop insurance,
exploitation by middleman, non-availability of labour at the time
of harvesting of
vegetables, high input cost, inadequate extension services,
insufficient electricity,
reducing water table and non-availability of quality planting
(seedling) material were
the major constraints faced by vegetable growers.
Mehta et. al. (2012) in his study on entrepreneurial behaviour of
Mango
growers of Valsad District of Gujarat State found that majority of
the mango growers
were found in medium to high level category as far as
entrepreneurial behaviour is
concerned. The indicators decision making was ranked first followed
by market
orientation (rank second) and economic motivation (rank third).
Majority of
respondents (73.00 %) were observed in the medium entrepreneurial
behaviour
category, thus, the entrepreneurial behaviour of the respondents
was predominantly
medium. Education, area under mango cultivation, annual income,
social
participation, awareness regarding value addition, mango yield
index, employment
generation, extension participation, mass media exposure, extent of
adoption,
management orientation, innovativeness, progressiveness and
knowledge of mango
growers had significant relationship with entrepreneurial behaviour
of mango
growers. Whereas age, land holding, irrigation facility, family
size and cropping
intensity had no association with entrepreneurial behaviour of
mango growers.
REVIEW OF LITERATURE 27
Bairwa et. al. (2014a) studied about basic concepts of
agripreneurship,
entrepreneurship skills, and needs of agripreneurship development
in India along with
major reason for promoting agripreneurship development in country.
In his study he
concluded that shift from agriculture to agribusiness is an
essential pathway to
revitalize Indian agriculture and to make more attractive and
profitable venture.
Agripreneurship have the potential to contribute to a range of
social and economic
development such as employment generation, income generation,
poverty reduction
and improvements in nutrition, health and overall food security in
the national
economy. Agripreneurship has potential to generate growth,
diversifying income,
providing widespread employment and entrepreneurial opportunities
in rural areas.
Bairwa et. al. (2014b) explored the potential opportunities in
agribusiness
management education which helps in employment generation and
entrepreneurship
development. Agribusiness management education is a discipline of
blend of
economic, agriculture, business (commerce) and management
principles.
Agribusiness management field is of very recent origin and gaining
rapid popularity
among students as carrier choice. The agribusiness program is
planned to develop
management workforce to cater agricultural Industry which serves as
a good option
for the students willing to perform in corporate sector.
Agribusiness management
education has great opportunities of employment for agrigraduates
in private,
governmental and cooperative sector. Agribusiness students can get
jobs for various
posts such as sales executives, credit officers, agri experts,
warehousing managers,
financing officers, food managers and logistic managers in national
and Multinational
Corporation. Agribusiness professionals have bright future in
academic field due to
new emerging discipline and lack of agribusiness faculty in the
country. Agribusiness
sector also helps in fighting against the Poverty, Hunger,
Malnutrition and
unemployment situations in the economy. Thus, Agribusiness
management sector will
change more in the next decade than it did in the last
century.
Patel et. al. (2014) studied the entrepreneurial behaviour of dairy
farmers
selected from all the dairy farmers of Panagar block of Jabalpur
District of Madhya
Pradesh. The study reflected that majority of the dairy farmers
found to have medium
level of entrepreneurial behaviour followed by high and low level
of entrepreneurial
REVIEW OF LITERATURE 28
dairy experience, organizational participation, land holding,
livestock possession,
annual income, material possession, economic motivation, market
orientation,
scientific orientation and knowledge of improved dairy management
practices at 0.01
level of probability, whereas education had positive and
significant relationship with
entrepreneurial behaviour at 0.05 level of probability.
Rai et. al. (2014) conducted a study on entrepreneurial behaviour
of vegetable
farmers in Bhopal district of M.P. during the period 2011-12. The
investigation was
confined to 10 villages in Agri Export Zone (AEZ) for vegetables in
Madhya Pradesh.
It was intended to conceptualize the entrepreneurial behaviour of
the vegetable
growers in terms of their socio-personal, agro-economic, extension
communication
and socio- psychological traits. The findings of the study are
expected to be useful in
identifying farm entrepreneurs for involving them in agriculture
development. The
mean value of entrepreneurial behaviour of small vegetable growers
was lower than
overall mean. The overall mean and per centage distribution of
economic motivation
of the vegetable growers indicated that majority of respondents had
medium level of
economic motivation. The overall mean and per centage distribution
of vegetable
growers according to their knowledge about vegetable production
technology
indicated that majority of respondents had medium level of
knowledge about
vegetable production technology. It also indicated that the
knowledge about vegetable
production technology of the small farmers was lower than the
medium and large.
I. Bangar Raju and M. Lakshmipathi Raju (2015) studied the
orientation of
entrepreneurship to agricultural activities in India and discussed
the prospects of
agricultural entrepreneurship in the VUCA world. They found that
agriculture is a
livelihood activity in India. The inherent ills of India
agriculture is that low
productivity and prevalence of disguised unemployment. These ills
shall be addressed
through Agricultural Entrepreneurship. Not only that some of the
chronic economic
problems like urbanization, poverty and unemployment also be
addressed by effective
agricultural entrepreneurship initiatives. Thereby, acceleration of
rural development
and economic development is possible. Agricultural Entrepreneurship
is a strategic
development intervention that has the potential to accelerate the
rural development
REVIEW OF LITERATURE 29
process. Agricultural entrepreneurship is vital for the generation
of employment in the
rural areas and for promoting incomes and earnings of people.
Manjunath et. al. (2015) conducted a study to know the
entrepreneurial
behaviour of mango growers in Kolar and Ramanagar district of
Karnataka during the
year 2014-2015. Major findings revealed that more than half
(55.83%) of the
respondents belonged to medium entrepreneurial behaviour category.
With respect to
dimensions of entrepreneurial behavior, majority of the respondents
had medium level
of risk orientation (63.33%), achievement motivation (59.17%),
innovativeness
(53.33%), decision making ability (52.00%), management orientation
(50.00%),
scientific orientation (45.83%) and economic motivation (42.50%).
The variables
namely education, land holding, family annual income, faming
experience in mango
cultivation, mass media exposure, extension participation and
extension contact were
found important in influencing the entrepreneurial behaviour of the
mango growers.
The regression coefficient of the selected variables viz.,
education, mass media
participation, extension participation and extension contact showed
positive and
significant relationship with entrepreneurial behavior. The value
of coefficient of
multiple regression (R2) in this case was 0.603 indicating thereby,
that 60.30 per cent
variation in the entrepreneurial behaviour of the mango growers was
explained by the
ten independent variables selected for the study.
Kumara et. al. (2016) attempted to investigate entrepreneurial
behaviour of
vegetable growers and the factors contributing towards
entrepreneurial behavior and
its association with their personal and socio-economic traits. The
important findings
of the study were: majority (41 %) of farmers had medium
entrepreneurial behaviour
followed by low (39 %) and high level (19 %) of Entrepreneurial
behavior. A positive
and significant relationship was observed between entrepreneurial
behaviour of
farmers and their personal, socio-economic and psychological
characteristics such as
education, land holding, social participation, mass media
participation, extension
participation, level of aspiration and adoption. It was found that
the most important
components of entrepreneurial behaviour were information seeking
behaviour,
innovativeness, farm decision making, and assistance of management
service and
achievement motivation.
REVIEW OF LITERATURE 30
Wanole et. al. (2017) studied entrepreneurial behaviour of banana
growers in
Nanded district during 2016-17 and noticed that, majority of
farmers (67.50 %) had
medium farming experience whereas, As regards to education, 32.50
per cent of
farmers were educated up to higher secondary school level and 4.17
per cent of
farmers were illiterate. As regards to family size majority of the
farmers (62 %) were
in medium family size and 17.50 per cent were in small family size.
As regards to
occupation, majority of the respondents (75.00 %) were engaged in
farming alone.
2.2. DISPOSAL PATTERN OF BANANA AND ESTIMATION OF
MARKETING COST, MARKETING MARGIN AND PRICE SPREAD IN
BANANA
Babhulkar N.N (1998) studied marketing of Banana in Thane District
of
Maharashtra and found that the major varieties of banana cultivated
in Thane district
are safed velchi, Lal velchi and Bhurkel. He also observed that the
marketing channel
for banana are three viz. First. Farmer to contractor, second
farmer to commission
agent and third is farmer to co-operative society. The maximum
marketing (44.80%)
is found in the II channel that is farmer to commission agent
followed by channel-1
41.14% and channel III (15.80%). He observed that price received by
the producer
were Rs.350.00 per quintal in local market. Net price received by
grower after
deducting marketing expenses (Rs.50.28/qunital) were Rs.
299.72/quintal. The price
received by the producer in distance market is Rs. 500/quintal and
net price received
after deducting market expenses (Rs. 128.48) were Rs.
371.52/quintal. In this
marketing system the producers share is found maximum (85.63%) in
local market
and minimum (74.30%) in distance market due to higher transport
charges (61.15%)
in distance market. The other marketing charges for loading,
unloading, grading,
packing, handling and commission are quite similar in both
marketing.
Uma et al., (1998) studied marketing and export of Banana in India
and
concluded that even after attaining self-sufficiency and surplus
production of banana,
India is not able to compete in the international market for banana
export due to the
presence of bottlenecks in marketing channels and gaps in
production with good
export quality. For the improvement and development of the
marketing structure, a
co-ordinated approach aimed at removing all the weak links in the
marketing chain is
REVIEW OF LITERATURE 31
essential. A package of improved marketing services in the form of
regulated co-
operative markets, facilities for grading, weighing, storing,
transporting, handling and
finance provision is to be made available to ensure the producer a
fair return from his
production effort and a better share in the price paid by the
consumer by fixing an
appropriate support price and procurement price. Market research
programmes should
be oriented to the developing of an orderly and efficient marketing
system. Though
the National Horticulture Board (NHB) has developed a very good
marketing
intelligence to disseminate marketing information regarding
horticultural produce to
the interested parties, commodity intelligence bulletins
exclusively for banana need to
be published. He further suggested that India being in era of
surplus banana
production, developing a systematic banana marketing channel and
extending its
range to foreign countries by improving the shelf life period and
storage and export
facilities has become crucial. Developing new banana varieties with
prolonged shelf
life period and export qualities etc. are the areas of primary
interest.
Mishra et al. (2000) in their study on production and marketing of
Banana in
Gorakhpur district of Uttar Pradesh assessed that the small farmers
were selling their
produce to pre harvest contractor (25%), village trader (20%),
wholesalers (20% of
produce), commission agent-cum –wholesaler (15%) and by direct at
sale local
market (20%). Medium farmers sold their produce to the commission
agents (20%),
pre harvest contractors (25%), to the wholesalers (15%), village
traders (20%), direct
sale in local market (25%). And large farmers sold their produce to
commission agent
cum wholesalers (25%), Pre harvest contractor (25%), to wholesalers
(10%), village
trader (15%), direct sale in local market (30%).
Guledgudda et al. (2002) studied production and its marketing in
Haveri
district of Karnataka. The findings of the study indicated that
that farmers in the study
area followed three distinct marketing channels to sell their
produce. Those channels
were: Channel-I: Farmer --- Pre Harvest Contractor‘s --- Commission
agent ---
Wholesaler --- Retailer --- Consumer, Channel-II: Farmer ---
Commission agent ---
Wholesaler --- Retailer --- Consumer and Channel-III: Farmer ---
Retailer ---
Consumer.
REVIEW OF LITERATURE 32
Farmers spent Rs. 1.50, Rs. 2.50 and Rs. 10.25 per bunch of banana
marketing in
channel-I, channel- II and channel-III respectively.
Shivanand (2002) studied on performance of banana plantations in
Northern
Karnataka, and identified two major marketing channels for banana
namely; Channel-
I: Producer --- Commission agent cum Wholesaler --- Retailer - -
Consumer Channel-
II: Producer --- Village level trader --- Commission agent cum
Wholesaler--- Retailer
--- Consumer. Among the two channels identified channel-I was found
predominant
over channel-II in marketing of banana in the study area. The
marketing cost incurred
by the producer in channel I was Rs. 9.50 while the marketing costs
in channel-II was
nil for producers.
Mali et al. (2003) in his study on production and Marketing in
Jalgaon district
in Maharashtra for Dwarf Cavendish (Basra) variety of banana. The
study revealed
that the cost of cultivation of Banana worked out to Rs. 133477.36
per hectare. The
gross returns per hectare of Banana came to Rs. 214867.24 and net
returns of Rs.
66761.87 were obtained by deducting the cost of marketing. The
study concluded that
the per quintal cost of marketing of banana was the highest in case
of local traders
followed by cooperative fruit sale societies who were selling the
produce to the
private traders. The cost of marketing per quintal was the lowest
in case of
cooperative societies selling the produce in Delhi market.
Verma and Singh (2003) studied Banana marketing in Bihar,
Jharkhand,
Orissa, West Bengal and Assam market. The findings indicated that
the longer the
marketing channel, the smaller was the farmers share. A high
marketing margin is
primarily due to high transport cost and product losses. Special
emphasis needs to be
placed on marketing practices at the farmer’s sale level. Most
growers market their
Banana through middlemen, such as commission agents and local
traders. These
intermediaries often claim up to 8 per cent of the value of sales.
Direct sales are
limited, however, by a lack of adequate transport facilities, and
high costs associated
with them, maximum price has been observed in Guwahati market on a
average basis
followed by Ranchi Market. The findings indicate that the longer
the Marketing
channel, smaller was the farmers share. A high marketing margin is
primarily due to
high transport costs and product losses. The development of
transport network, better
REVIEW OF LITERATURE 33
packaging and product handling technologies is necessary for
efficient marketing
system.
Rane and Bagade (2006) in their study on production and marketing
of
banana in Sindhudurg district of Maharashtra revealed that about 71
per cent of the
produce was routed through Channel –II i.e. Producer ---- City
wholesaler ----
Retailer ---- Consumer and about 29 per cent of total produce was
routed through this
channel I (Producer ---- Village Retailer ---- Consumer). The
average cost per bunch
of banana marketing incurred by the producer in Sindhdurg district
was Rs. 50.06.
Total marketing cost per bunch of banana incurred by the producer
in in Sawantwadi
tehsil it was Rs. 40.33 and Rs. 59.79 in Dodamarg tehsil.
Jain and Nichit (2007) examined the marketing aspects of
horticultural crops
in Dharsiwa block in Raipur district of Chhattisgarh. The study
revealed that the area
under horticultural crops was increased at small and medium farms
but decreased at
large farms. The cropping intensity was vary from 152.03 per cent
at large farms to
179.03 per cent at small farms. The farmers sold 96-98 per cent of
fruits and
vegetables in market and very less (2-4%) amount of it was used for
home
consumption. The marketed surplus was increase with increasing the
size of holding.
The two channels observed in the marketing of fruits and vegetables
were, channel-I:
Producer-consumer and channel-II: Producer-commission
agent/retailer-consumer.
The study revealed that the farmers were selling 77 per cent
vegetables and 91 per
cent fruits through the commission agents. The channel-I was more
popular among
the small farmers because they received more prices in this
channel.
Sarode (2009) studied the economics of banana marketing in Jalgaon
district
in the state of Maharashtra and concluded that the overall producer
net share in
consumer rupee was 46.41%. The share of wholesaler (7.46%) and
retailer (11.35%)
were substantially large which affected the producers share in
consumer’s rupee.
There was a big gap between prices paid by the producers. The
middleman share can
be reduced by eliminating number of intermediaries from marketing
channel and
bringing the consumer closer to producer. This would also raise the
producer share in
consumer’s rupee.
REVIEW OF LITERATURE 34
Pawar et al. (2010) investigated marketed surplus and price spread
in banana
marketing carried out during the year 2008-2009 in Maharashtra. The
results reveled
that size of banana garden was 1.98 hectares with 439.56 quintals
of banana
production. The highest quantity of banana production was marketed
through
Channel-III (Producer-Trader-Wholesaler-Retail shop owner-Consumer)
that was
60.38. Per cent. Per quintal price paid by consumer was highest as
Rs.800 in Channel-
III followed by that of Rs.650 in channel-II (Producer – Merchant –
Retailer –
Consumer) and Rs.530 in Channel-I (Producer – Vender – consumer).
Producer’s
share in consumer’s rupee was highest as 92.98 per cent in
Channel-I followed by that
of 78.77 per cent in Channel-II and 69.77 per cent in Channel- III.
But net price
received by producer was the highest as Rs.558.18 in Channel-III
followed by Rs.512
and Rs.492.80 in Channel- II and Channel-III, respectively. Price
spread was also
highest as Rs.241.82 in Channel-III followed by that of Rs.138.00
in channel-II and
Rs.37.20 in Channel-I. It inferred that channel-III was found to be
the most efficient
with respect to producer as well as intermediaries in absolute
term.
Bhat et. al. (2011) in his study on production and its marketing of
Kinnow
under North -Western Himalayan Region of Jammu revealed four
important channels
identified for kinnow marketing in the study area viz.: Channel-I:
Producer →
Forwarding/ Commission agent → Retailer → Consumer, Channel-II:
Producer →
Wholesaler → Retailer → Consumer, Channel-III: Producer → Retailer
→ Consumer
Channel-IV: Producer → Consumer. A comparison of price spread
through different
marketing channels has revealed that producers’ share in consumers’
rupee was the
highest (about 81%) in channel-IV, due to self-sale in the local
market when the
produce is sold directly to consumers. Price spread analysis has
revealed that different
market intermediaries are the major beneficiaries in the marketing
channels. The
marketing efficiency has been found to be highest in channel-IV.
The producer got
maximum benefits in channel-IV, therefore this channel should be
followed to make
producer highest beneficiary. However, the marketing efficiency has
been found high
in channel- IV (4.27), followed by channel-III (1.46), channel- I
(1.00) and channel-II
(0.80).
Takle et al. (2011) studied banana marketing management system in
Nanded
district of Maharashtra state. The study revealed that two channels
existed in the study
REVIEW OF LITERATURE 35
area namely: Producer to Pre-harvest contractor to Wholesaler
(Distribution market)
to Wholesaler (Consumer market) to Retailer to Consumer and found
that there is a
heavy difference in the price of banana received to producer and
paid by consumer.
The study also revealed that the fruit market is not efficient for
Banana in India as
within the market chain from producer to consumers Banana prices
hike by 301 per
cent. The main reason behind this heavy costing by the agents and
near about 20 per
cent banana usually wasted because of unavailability of advanced
facilities like cold
storage plants. The study further suggested that to overcome this
problem Banana
producers and consumer come under the umbrella of Rayat Bazaar and
also adopt
complementary market management system for Banana. Adoption of
Rayat
Marketing Management System prevents the rate hikes by the agents
and it is fruitful
for the farmers as well as consumers. Efficient and favorable
agricultural market is
helpful to promote this sector to achieve 4% growth rate.
Gowri and Chandrasekaran (2012) studied the value chain of banana
sector
in western Tamil Nadu for different varieties of banana — Nendran,
Poovan, Kathali
and Robusta. The analysis implied that to improve the marketing
efficiency, the
growers should sell their produce directly to the wholesaler or tie
up with the
processor or retailer wherever feasible. To prevent the
post-harvest loss, there is need
for training in post-harvest handling of fruit bunches and farmers
must have the latest
market knowledge, for taking better sales decision.
Naveen B. (2013) conducted a study to assess the production and
marketing of
banana in Chikkaballapur district. The study revealed that there
were three important
marketing channels in the study area. The Channel-I; Producer,
Village level trader,
Wholesaler, Retailer and Consumer. Channel-II: Producer,
Wholesaler, Retailer,
Consumer. Channel-III: Producer, Wholesaler, Vendor, Consumer. The
share of
producer in the consumer rupee was higher (50.90%) in Channel-III
compared to
Channel-II (46.80%) and Channel-I (41.59%). Farmers preferred
Channel-I, because
they received cash immediately after the sale of the produce to
village level trader at
the farm level itself and to avoid the risk of violent price
fluctuation in open market.
Gowri and Shanmugam (2014) studied the production trends and
present
marketing practices of banana in India and found that the
production, as well as
REVIEW OF LITERATURE 36
exports and imports of bananas, are highly concentrated in a few
countries. India,
China, the Philippines, Brazil and Ecuador alone produced more than
60 per cent of
total world banana production. This concentration of banana
production has increased
over time although showing a different regional distribution.
Banana is the largest
produced and maximum consumed amongst the fruits cultivated in
India. However,
the present production of banana in the country is highly
inadequate. It is estimated
that, the present annual per capita consumption of banana in India
is 50 kg per head
which is very low compared with other progressive banana growing
countries such as
Jamaica, Congo, Ecuador, and Uganda. Thus, there is an immense
scope of increasing
banana production in the country. The post-harvest losses in banana
have been
estimated in the range of 25-40 per cent from harvesting to
consumption stage.
Storage is essential for extending the consumption period of fruits
in general by
regulating their supply to the market and also for transportation
to long distances.
Naveen et al. (2015) conducted a study to study the production and