Department of Economics and Sociology, Punjab Agricultural University, Ludhiana – 141 004, Punjab.
The paper has conducted the value chain analysis of turmeric in the vicinity of a turmeric processing unit being run by Farms Produce Promotion Society (FAPRO) in the district Hoshiarpur of Punjab. Besides this, economics of turmeric production and various production and marketing constraints confronted by the growers have also been investigated. The study has revealed that human labour, expenses on suckers and machine labour are the major costs in total variable cost. The benefit-cost ration has been found quite attractive (2.07). Value chain analysis has shown the Farms Produce Promotion Society (FAPRO) to be the sole purchaser of farmers’ raw produce. Across four marketing channels studied in the paper, Producer–Processor (FAPRO)–Consumer (channel I) has been found the major marketing channel by which nearly 72 per cent of the turmeric powder is sold. In this channel, the relative share of net price received by producer in the consumer rupee has been found as 15.46 per cent, while net margin of processor has been noted as 34.10 per cent. The other channels included are: Primary Agricultural Cooperative Society (PACS), self-help groups (SHGs) and local unemployed rural youth as intermediaries. The share of processor in consumer rupee has been found much les in these channels. The major production and marketing constraints confronted by turmeric growers have also been reported.
