A Comparative Analysis of Supply Chains and Value Chains of Banana Processing Enterprises in Tamil Nadu State

The present study identified and analyzed the supply chains and value chains of banana processing enterprises selected randomly from the Tamil Nadu state. It was found that raw material cost shared significant portion of consumer’s rupee (9-27%) followed by processing charges (23 to 57%). Marketing cost, marketing margin, price spread and producer’s share in consumer’s rupee varied with length of marketing channel. Supply chain efficiency was inversely related to length of marketing channel and marketing costs. Total marketing costs ranged from 1 to 8 per cent of consumer’s rupee. Total margins ranged from 24 to 59 per cent of consumer’s price and the highest percentage of profits were realized by processors (14-59%) followed by retailers (8-17%). Packing charges (1.5-8%), transportation costs (1.4-6%) and sales tax (2-3%) contributed significantly towards increase in consumer’s price. Price spread was lesser and producer’s share in consumer’s rupee was higher for shorter marketing channels with less number of intermediaries and vice-versa for lengthier marketing channels. This shows the necessity to reduce the length of marketing channel to get maximum benefits to producers, processors and consumers. It can be attained through reforms in agricultural marketing system through establishing direct linkage with farmers, infrastructure development, extension of road network and transportation, storage & warehousing, market intelligence system, capacity building etc.