Organised Retailing verses Traditional Retailing of Vegetables

Our country is rewarded with a wide range of agro-climatic conditions which allow the production of vegetables and fruits throughout the year. The demand for agricultural products is increasing due to awareness about the benefits of vegetables and fruits for maintenance of health and prevention of diseases. In India the development of organised retail chains has deeply influenced fruit and vegetable marketing system. The present study was done to analyse the effect of the upcoming organised retail chains on farmers, consumers and different marketing channels. Farmers are the areas under study which are selling their produce to retail outlets. The study observed that the cost incurred to sell the produce to organised retail chains was less and the net price received by the grower in organised retail channel was more for all the two vegetables when compared to traditional marketing channels. The farmer's share in consumer's rupee was higher through organised retail channel. The organised retail outlets help in reducing transaction costs and increasing farm profits. Government has to play a positive role in regulation of prices, open and operate retail outlets and should assess the production and consumption level and announce the minimum support prices of the vegetables.