Agricultural Economics Research Review
  • Year: 2010
  • Volume: 23
  • Issue: conf

Price Spread of Cotton in Different Supply Chain Systems in Warangal District of Andhra Pradesh

  • Author:
  • N. Krishna, C. V. Hanumanthaiah
  • Total Page Count: 1
  • Page Number: 545 to 545

Department of Agricultural Economics, College of Agriculture, Hyderabad–500 030, Andhra Pradesh.

Abstract

The study has overviewed the marketing costs, margins and price spread in different supply chains of cotton marketing. Four important supply chains have been identified in marketing of cotton in the Warangal district, viz. (1) Producer → Village merchant → Commission agent → Trader → Miller → Wholesaler in lint → Consumer; (2) Producer → Commission agent → Trader → Miller → Wholesaler in lint → Consumer; (3) Producer → Commission agent → Trader cum producer → CCI → Consumer; and (4) Producer → CCI → Consumer. The cotton farmers have been found to have highest share in consumer's rupee in Supply chain IV (96%) wherein the CCI purchases cotton directly from producer, and lowest share in supply chain I (88.2%), wherein the role of village merchant is prominent. The marketing costs have been observed highest in the Supply chains II and III (6.94%) wherein the role of trader is prominent. The majority of the producers have been found to adopt Supply chain IV because of higher price and low marketing costs.