An economic analysis of production and marketing of onion in Perambalur distrit of Tamil Nadu

The present study was conducted in Perambalur district of Tamil Nadu during 2012 with the objectives of estimating the costs and returns of Onion production, to trace marketing channels, and for assessing marketing efficiency. A sample of 90 Onion farmers was selected at random from 10 villages in two blocks of Perambalur district. The primary data were collected by personal interview method. It was found that the cost of cultivation of small Onion was Rs.44346.18/ha. The gross income realized was Rs.95583.10/ha and the net income was Rs.51236.92/ha. There are four marketing channels for Onion in the study area; of which one is the direct marketing. In the remaining three channels intermediaries are involved. Price spread analysis and Shepherd's ratio revealed that Channel III (producer retailer&array; consumer) is the most&array; efficient. The producers’ share was highest with 61.87 percent. Drought, labour scarcity and high wage rate are the major constraints faced by onion farmers.