A STUDY OF MARKETING POTATO CROP IN BARABANKI DISTRICT

OF UTTAR PRADESH

SUBMITTED TO THE

INTEGRAL UNIVERSITY IN PARTIAL FULFILLEMENT OF

THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

In

AGRIBUSINESS MANAGEMENT

By
SARVAGYA SINGH
Enrollment Number: 2200101549
Under the Guidance of
Dr. Setu Ratnam
Assistant Professor
(Department of Agriculture)

Integral Institute of Agricultural Science and Technology (IIAST)

Integral University

Lucknow-226 026

2023-24
 CERTIFICATE

This is to certify that the thesis entitled A STUDY OF MARKETING POTATO CROP
IN BARABANKI DISTRICT OF UTTAR PRADESH Submitted for the degree of
Master of Business Administration in Agribusiness Management to the Integral
University, Lucknow by a bonafide student Mr. SARVAGYA SINGH (Enrollment
Number 2200101549) had worked under my supervision and that no part of this thesis has
been submitted for any other degree.
The assistance and help received during the course of research work has been duly
acknowledged.

Forwarded by: Advisor

Dean/Head Dr. Setu Ratnam

(Assistant Professor)
Department of Agriculture
(IIAST) Integral University
Lucknow

i
 DECLARTION

I hereby, declare that the present dissertation entitled A STUDY OF MARKETING

POTATO CROP IN BARABANKI DISTRICT OF UTTAR PRADESH embodies the
original research work carried out by the undersigned and has not been published and/or
submitted to elsewhere for the award of any degree

Date SARVAGYA SINGH

(2200101549)
MBA Agribusiness Management

ii
 ACKNOWLEDGEMENT

First of all, I would like to express my deepest appreciation to my adviser, Dr. Setu
Ratnam, Assistant Professor, Department of Agriculture IIAST, Integral University,
Lucknow for giving me this wonderful opportunity to undertake this research which is the
part of my MBA (Agribusiness management). He was always there to help and guide me
when needed.
I am greatly in debted to Prof. Saba Siddiqui Head, Department of Agriculture, Integral
University, Lucknow. Without her help and guidance, this would not have been completed.
I am falling short of a word in expressing sincere tribute to all staff members of the MBA
(Agri business Management) for their various supports during my course of study at
Integral University.
Words are insufficient to express my gratitude toward my sample respondent who spread
their precious time and sincere thanks to my parents and all my friends for their support
and motivation throughout the project.

Date: SARVAGYA SINGH

(2200101549)
MBA Agribusiness Management

iii
 EXECUTIVE SUMMARY

The goal of this research is to investigate and analyse the marketing of potato crop in
Barabanki District of Uttar Pradesh. To learn more about the elements that
influences the market for such crops. To reach a conclusion, factors such as people's
attitudes, income levels, Occupation, lifestyle changes, and product availability are
considered. The main goal of this research is to look at the marketing strategies of
potato as well as the major elements that influence its growth and future potential.
Market research will reveal the segment's long-term potential as well as people's
demand for such items. Aside from convenience, this market is influenced by a
number of hidden and emerging forces. However, there is no set limit for this
industry because it must continue to expand and mature.

This project effort is the ideal way for me to discuss and share my learning
experiences and challenges encountered during this incredible journey. The project is
part of the MBA (agribusiness management) program, and it will be completed in
July 2023. Core objective and intuition of this research was to discuss the marketing
channel of potato and constrains faced by the potato growers. Whole research paper
divided into five chapters. First chapter of this report, will provide through idea,
importance and provide details in marketing of potato in India. Moreover, it also
provides the detailed procedures that we followed to identify the research problem,
and how to come forward with the research objectives. In the chapter two, design a
literature of review table winch's intention was to accumulate all the existing
information and finding that we have found throughout this time span related to the
marketing strategies of potato crop. Secondary data was also collected which
supports the primary data of the research and determine different variables upon
which made the potential survey for sample target group. Chapter three refers all the
procedures and justifications for that were taken under consideration for choosing
variables. In addition to, it also talks about our target sample population and raw
information from the sample that has taken for the research purpose. In chapter four,
analyzed the findings based on data collection through graphical illustration like pie
charts, graphs to understand better about selected problem statement and research
objective.

iv
 TABLE OF CONTENT

CHAPTER1: INTRODUCTION..............................................

CHAPTER2: REVIEW OF LITERATURE............................

CHAPTER3: RESEARCH METHODOLOGY......................

CHAPTER4:DATA ANALYSIS...............................................

CHAPTER5: CONCLUSION...................................................

REFERENCES...........................................................................

APPENDICES.............................................................................

v
 INTRODUCTION

Agriculture is the backbone of Indian economy. Potato is the most important

food crop of the world. Potato is a temperate crop which grown under subtropical
conditions in India. The potato which has always been the ‘poor man’s friend’. Potato has
been cultivated in the country for the last more than 300 years. Potato is the fourth major
food crop after rice, wheat, and maize in the world. India is the second largest producer of
potato (50.19 million tonnes) in the world. The cultivation of potato is done almost in all
states of India. However, the major potato growing states in India are Punjab, Himachal
Pradesh, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, West Bengal, Karnataka,
Bihar and Assam. The current status of potato in agricultural GDP is 2.86%. At present in
India, the production of Potato is 51.9 million tons from an area of 2.17 million ha during
2018- 19, thus making India is the second largest potato producer in the world after
China. The three largest potato producing states, are Uttar Pradesh, West Bengal, and
Bihar which contribute about 76.5% to the national production. Potato prices are hovering
at Rs 10 to 15 per kg in vegetable market across India, compared to high to Rs 43 per kg
last year. Farmers claims that the COVID 19 lockdowns last summer seriously disrupted
the supply chain, causing potato prices to skyrocket. And now they have all crashing
down.

One of the most widely cultivated horticultural crops in India. Potato is mostly
grown as cash crop and provides good returns to farmers when grown scientifically.
When grown with otter cereals as intercrop, it provides additional benefits. The
contribution of potato to the national agricultural economy is manifold. For a developing
country like India, where labor is surplus and limited capital, high yielding and labor-
intensive crops like potato, have added advantage in increasing food production and
employment generation. Being a short duration crop, it fits well in relay cropping
systems. Returns from investment on research and development are an important
yardstick to judge the importance of a particular crop in the national economy. In India
potato is cultivated in almost all states under diverse agro climate conditions. About 85
per cent of potato is cultivated in Indo-Gangetic plains of north India. In states of Uttar
Pradesh, West Bengal, Bihar, Gujrat accounted more than 70% share in total production.
In Uttar Pradesh there has been steady and continuous increase in the area and production
of potato during recent years. The acreage has gone up from 1992200 ha. During 2013 to
21, 79000 ha during 2016 -2017.

1
The Changing Research and Development Scene

Since 1958, high-yielding varieties have been released for different Indian agro-
climatic regions. Three additional changes have led to an increased supply of quality seed
to growers: a national seed potato production program streamlined in 1966, development
of the Seed Plot Technique in the 1960s for raising disease-free, healthy seed potato in the
subtropical areas of the Indo-Gangetic region, and steady growth in the cold storage
network.

The growth rate of potato over the last four decades surpassed the principal
cereals-rice and wheat-for all years, except from 1967-68 to 1988-89 when wheat yield
recorded a slightly higher growth rate. Area planted in potato nearly doubled from
500,000 ha in 1967-68 to 940,000 ha in 1990-91. Production surged from 4.23 million t to
15.25 million tan 260% increase during the same period. This reflects a yield increase of
from 8.44 t/ha (1967-68) to 16.23 t/ha (1990-91), and a production increase of 92%.
Overcoming this major product, constraint has focused attention on problems in
marketing and use of potato.

National Agricultural Marketing Framework

In India, the agricultural marketing system largely operates under the forces of
supply and demand. Trade is mainly in the hands of private enterprise, with governmental
intervention mainly limited to protecting the interests of producers and consumers and to
promoting organized marketing of agricultural commodities (Govt. of India,1998).

The Directorate of Economics and Statistics, Ministry of Agriculture, reports

annual crop area and production estimates, as well as reporting market arrivals, prices,
etc. The Direct to rate of Marketing and Inspection (DMI), Ministry of Rural
Development, conducts research on the marketing system of the principal farm
commodities and enforces the Cold Storage Order of 1980. It published reports on potato
marketing in India in 1941, 1956, 1967, and 1984; and one report on price spread and
marketing channels in 1984. The National Horticulture Board, under the Ministry of
Agriculture, reviews research and development in horticultural crops, including potato,
and also collects market information for these crops at the national level. The National
Agricultural Co-operative Marketing Federation of India Limited (NAFED) is the central
body dealing with procurement, distribution, and export and import of selected
agricultural commodities. For potato, it is the nodal agency, in cooperation with state
agencies, for implementing market intervention schemes.

2
 At the state level, State Agricultural Marketing Boards and Directorates of
Agricultural Marketing develop and regulate markets in the organized sector, and collect
and disseminate market information under the Agricultural Produce Markets (Regulation)
Acts. State Cooperative Marketing Federations implement market intervention schemes,
while seed certification agencies certify potato in Bihar, Haryana, Himachal Pradesh,
Karnataka, Punjab, Tamil Nadu, Uttar Pradesh, and West Bengal

Cooperative marketing societies and commission agents play important roles in

potato marketing in India. Cold storage owners’ associations have been set up in Haryana,
Uttar Pradesh, Bihar, West Bengal, Gujarat, and elsewhere, and this cold storage network
plays a pivotal role in potato marketing. A few processing plants set up near urban
centers, such as Delhi and Ludhiana, promote marketing of value-added potato products.
Finally, retailers complete most marketing channels and sell both fresh and stored
potatoes.

Storage and Transport

Potatoes are mostly produced during the winter season from November to March,
but are consumed year-round. Therefore, storage plays an important role in the creation of
time and place utilities. Traditional storage methods include the sand method, pit storage,
platform (machan) storage, and storage on bamboo chips or wooden planks. With a view
to regulating the development of the cold storage industry. the Indian government
promulgated the Cold Storage Order in 1964 (replaced by the Order of 1980) under
Section 3 of the Essential Commodities Act of 1955. West Bengal and Uttar Pradesh
States enacted their own legislation in 1966 and 1976, and Punjab and Haryana
announced their legislation in 1979.

Until the late 1950 the growth of cold storage capacity was slow, therefore the
Third Five Year Plan (1961-62 to 1965-66) provided an incentives package for industry
development. As a result, cold stores increased to 1,091 with a capacity of about 1.5
million t by the end of 1969. By the end of 1989, this had increased to 2,797 stores with a
capacity of more than 6.8 million t. Nearly 85% of the cold stores with 92% of the total
capacity are located in potato-growing states. The private sector owns 85% of the cold
stores with a capacity of 88%, the remainder are in the public and cooperative sectors.
Currently, the cold storage capacity of 6.8 million t-of which 6.1 million t is exclusively
for potatoes-is inadequate. An additional 1.8 million t capacity is scheduled for
completion by the end of the Eighth Five Year Plan in 1997.

3
 Cold storage available for total potato output in the Indo-Gangetic region has
increased from 37% in 1979-80 to 42% in 1989-90. The West Bengal situation has
remained static. Bihar reported a drop in storage capacity for potatoes from 31% to 25%
during the study period. Punjab and Haryana have more than optimum storage capacity,
probably because the aggregate potato output has gone down over the last decade.

In Uttar Pradesh reported that about 80% of the cold storage capacity is used by
either traders or farmers of large holdings. Small holders are hardly able.

Probably more than 10% of the cold storage capacity is used for storing other semi-
perishable products in these states. The area under potato in the Punjab was reduced from
37.6 to 18.5 thousand ha from 1979-80 to 1989-90. During the same period, potato area in
Haryana decreased from 11.4 to 8.7 thousand ha. to put potatoes in cold storage because of
their limited capacity to bear the costs and risks associated with storing potatoes. In West
Bengal, found that cold stores benefitted middlemen and traders in manipulating prices in
the lean months of the year, which resulted in intermediaries generally getting higher
returns per 100 kg than producers. The National Commission on Agriculture (1976)
pointed out malpractices: charging exhort bit ant storage rates and fictitiously booking
space to create the impression of an artificial glut, thus forcing growers to part with their
produce at an un remunerative price. Later in this paper, interstate variations in cold
storage rates are discussed.

Different types of transport move potato in India. Manual labor and pack animals
are the principal modes of transport. n the hilly areas of West Bengal and in Himachal
Pradesh. People there carry potatoes in Kilts on their backs, while in the plains bullock
carts are the principal mode of potato transport from the village to the primary market
center. In coastal areas, large quantities of potato are transported by steamer or country
boat. Inland waterways handle a fair share of the potato trade in West Bengal and Assam.

Railways haul potato over long distances and trucks are a common mode of
transport. DMI (1984) reported that though trucks on roadways are used, railroads
continue to be important to transport potato from producing to consuming areas. A study
by Bhaskar Neel (1980) showed that 12,500 railway cars (wagons) should have been
replaced annually. However, he reported that an average of only 10,400 cars (wagons)
were replaced annually between 1974 and 1979. Because many commodities including
potatoes are transported by railways, this declining freight capacity is disturbing. Also
potato transport is accorded the low "C class" priority which impedes the speedy
movement of potato. Air-cooled or refrigerated cars are simply not available.
4
Market Structure and Price Analysis

The marketing structure and price analysis of potatoes in India can vary depending
on various factors such as supply and demand dynamics, seasonality, transportation costs,
and market intermediaries. Here an overview of the typical marketing structure and price
analysis of potatoes in India:

Marketing Structure

Farmers: Potatoes are primarily cultivated by farmers across different states in India. They
grow potatoes in their fields and are responsible for production and harvesting.

Wholesale Markets: After harvesting, farmers typically sell their produce in wholesale
markets. These markets are often located in major cities or agricultural hubs. Wholesale
markets serve as the central point for trade between farmers and intermediaries.

Commission Agents/Middlemen: Commission agents or middlemen play a significant role

in the marketing structure. They act as intermediaries between farmers and buyers. They
facilitate the sale of potatoes by offering services such as grading, sorting, and packaging.

Retailers: Once potatoes are purchased from wholesale markets, they are distributed to
retailers such as local vegetable vendors, grocery stores, supermarkets, and restaurants.
Retailers sell potatoes to end consumers.

Price Analysis

The price of potatoes in India can be influenced by several factors, including:

Supply and Demand: The availability of potatoes in the market compared to the
demand for them has a direct impact on prices. If the supply is low or the demand is high,
prices tend to rise, and vice versa.

Seasonality: Potato prices in India often vary with the seasons. During the harvesting
season, when the supply is abundant, prices tend to be lower. In contrast, during off-
seasons when supply is limited, prices tend to be higher.

Transportation Costs: The cost of transporting potatoes from production areas to wholesale
markets and then to retailers can impact the final prices. Transportation costs, including
fuel prices and logistics, can add to the overall cost and influence potato prices.

Intermediary Margins: The margins charged by commission agents and middlemen at

different stages of the supply chain can affect the final price paid by consumers. Higher
margins may lead to higher retail prices.
5
Government Interventions: The government's agricultural policies, such as import/export
regulations, subsidies, and minimum support prices, can also impact potato prices in India.

It's important to note that the marketing structure and price analysis can vary across
different regions and states in India. Additionally, factors such as weather conditions, crop
diseases, and storage facilities can further influence potato prices. Local market conditions
and dynamics need to be considered for a more accurate and specific analysis of potato
prices in a particular region or city.

Price Spread and Marketing Channels

Observed that in Pratapgarh, UP, the farmer's share in the consumer rupee was
lower than in the Varanasi market, with the producer receiving 65% of the consumer price.
They suggest that inadequate cold storage, an acute shortage of wagons and trucks, and an
unhelpful attitude of the Uttar Pradesh Cooperative Marketing Federation were the major
factors contributing to the higher price spread. Diwakar and Murlidhar an (1981) identified
II marketing channels in the Farrukhabad District. The producer's share ranged from
51%to 75% depending upon the channel. Producer's profits were highest when the
potatoes were sold directly to the secondary market from cold storage, and lowest when
sold to the village trader (Bania). The marketing costs of the farmers and intermediaries
varied between 1.5% and 18% of the consumer price in the various channels. Farmers bore
higher per 100 kg marketing costs than intermediaries, with small holders receiving a
relatively smaller share compared to medium and large holders. In Burdwan District, West
Bengal, two potato marketing channels were predominant in the 1980s: (1) producer-
wholesaler-retailer-consumer and (2) producer-cold storage-wholesaler-retailer-consumer.
This system was considered inefficient in view of "excessive profits for middlemen".
Traders used the cold storage facilities which further reduced the producer's share from
80% to 50% (Bakri and Banerjee 1983). DMI (1984) also studied the price spread in three
marketing channels in West Bengal. These were (1) producer-commission agent-retailer-
consumer, (2) producer-cold storage-commission agent-wholesaler-retailer-consumer, and
(3) producer-commission agent-wholesaler-retailer-consumer. The producer received the
highest share of 80% and 81 % in the first two market situations in the first channel versus
only 44% in Darjeeling District and 63% in Calcutta in the other two market situations in
the third channel. This indicates that the producer is benefitted only when the price spread
is narrowed down.

6
Use Patterns and Trends

Potato is used for fresh food, processed products for human consumption, starch
alcohol production, seed, and animal feed. In India, however, potato is exclusively used for
human consumption, Singh (1972).

The National Sample Survey Organization (NSSO) in its 17th Round (1961-62)
estimated that the per capita annual consumption of potatoes was 9 kg in urban areas and
7.7 kg in rural areas. In its 1967 research report, DMI reported that production could be
divided as: food 77%, seed 14%, wastage 8%, exports 0.3%, and processing 0.1%. The
Indian Institute of Foreign Trade investigated potato disposal and export in 1968. It
reported that potatoes were mainly processed to meet the defense requirements and that 4.5
million cans were produced. In NSSO's 28th Round in 1973-74, they found that urban per
capita consumption had risen from 9 to 10.2 kg and rural consumption from 7.7 to 8.4 kg.

Compared with its 1967 report, DMI reported in 1984 that use patterns had
changed (DM1 1984). The bulk of potato was for food at 63% down from 77%, seed was
up 6% to 20%, and wastage more than doubled to 17%, the same 0.3% were exported, and
processing was lower at 0.03%, as a per centage of increased potato production in the
country.

Potato processing is gained momentum, Verna (1991) cited several studies showing
this progress. The capacity for processing potatoes in the organized sector is 25,000 t/year
(Kankan 1986). Naik-Karadi (1986) reported that 2,000 t/year of potatoes are canned or
dehydrated for the armed forces, and six potato chip production plants and two French fry
plants have been set up. Genki (1990) reported the capacity for potato chip production in
the organized sector to be 6,000 t/yr. He found five potato chip brands in the market,
including one multinational: Uncle Chips, Bonnies, Ruffles, Alou, and Wonder, plus
potato wafers and Franz (potato fingers). These are commonly sold in urban areas, but can
also be found in rural areas. Although these products are demanded by the urban middle
class-now estimated to be some 50 million consumers-they continue to be beyond the
reach of most. However, according to Verma (1991), the prospects for using potato as an
industrial raw material appear to be limited at present as cheaper alternative raw materials
for the production of starch, such as maize and tapioca, are available.

7
Imports and Exports

Prior to World War H, potato was imported, mainly as seed, from Burma, Italy, the
Netherlands, and the United Kingdom (Shekhawat et al. 1992). DMI (1956) also reported
that potato was imported from Kenya. And in their 1967 report, DMI attributed 99% of the
total imports from 1956-57 to 1960-61 to be seed potato from Burma. This was almost a
total shift away from European imports.

NAFED (1983) reported that up to 1973-74 potato exports were insignificant. In

those years, 80-98% of exports were to Nepal. Other export markets for Indian potato were
the Bahrain Islands, Dubai, Iran, Kuwait, the Maldives Islands, and Seychelles. Dahiya
and Sharma (1980) observed that in 1974 only 1.3% of the world's total potato production
was exported and this trade was mainly confined to Europe. From 1962-76, India's share in
world potato exports had been equal to or less than. 1%, except for four years: 1962, .34%;
1963, .60%; 1975, .32%, and 1976, .92%. It is clear that potato exports as a per cent of
total potato production in India have been marginal and highly variable ranging from .01%
in 1967-68 and 1970-71 to .44% in 1962-63 and .49% in 1963-64 (see Table 3). This also
holds true if we consider the per centage of all of India's exports in relation to world
exports. Exports were highly variable from year to year.

NAFED entered export trade in 1974-75. The next year, India had a bumper crop
and prices crashed. That same year, the European crop was devastated by a severe late
blight attack. NAFED and other exporters succeeded in exporting 29,828 t valued at Rs.
348 million (3.48 crores) to continental Europe and the United Kingdom. In the following
year, 1976-77, potato exports peaked to a record 44,671 t valued at Rs. 585 million (5.85
crores). Exports

Statement of Problem

Potato marketing in India suffers from severe constraints like high marketing cost
and margins, wide price fluctuations, existence of large number of middlemen, storage and
transportation bottlenecks and lack of other marketing infrastructures. The potato markets
are imperfect, segmented, and are inefficiently performing the marketing functions. They
are oligopolistic in nature where commission agents dominate. Producers are deprived of
the proper share in consumer’s rupee due to existence of large number of middlemen in the
marketing channel. In the export front India’s performance is dismal. Lack of cold chain
awareness of Indian potato varieties in the foreign markets, long-term export strategy,
suitable packaging material etc. are some of the impediments in the way of sustained
potato exports. Expanding the existing cold storage facilities. encouraging diversified usof
8
 potato & producers and consumers cooperatives. market regulation. establishing more
processing units and processing & seed zones. conducting export oriented market research;
formulating well-drawn long term export policy adhering to strict sanitary and
phytosanitary measures could be some of the steps to ensure the efficient potato
marketing.

Price Fluctuations

Price fluctuation is a common phenomenon in case of seasonal and perishable

commodities like potato (Sharma and Sharma, 1996; Malik et al., 1995). Keith and Mehta
(1988); Janardanjee and Chandra (1994) reported that market arrival and market price are
subjected to wide fluctuation. Price fluctuation is mainly attributed to the seasonal
production with consequent variation in market arrivals. Poor cold storage facilities and
lack of retention power of the potato growers also contribute to the price fluctuation.

Problems In Storage
Potato is mainly a seasonal crop. About 90 per cent of potatoes are produced in the
winter season but their demand spread over the year, necessitating cold storing for
regulating market supply around the year. Storage creates time utilities in marketing of
farm products and plays a vital role.

Market Imperfections
The potato markets in India are imperfect, segmented, ineffective and are inefficiently
performing marketing functions (Johl, 1986; Fuglie et al., 2000). Diwakar, 1990; Dahiya,
1999 and Dahiya et al. (1999) also observed that the potato marketing system is segmented
and are concentrated oligopoly in nature where the market power being enjoyed by some
influential traders, middlemen and commission agents.

Objective of the study

1. To study the socio-economic profile of farmers growing potato in study area.
2. To study the marketing of potato in study area.
3. To find out the constrains faced by the farmers in marketing of potato in study area.

Limitation of the Study

The respondents were limited and cannot be treated as the whole population. The research is done
on a small amount of consumer. The major constraint is the time. The research is done based on
one time data. Due to language problem the respondents are not able to understand the
questionnaire and may give misleading results. A part of consumers is not aware of technical
knowledge. Simple tipes of tools are used on research.
9
 REVIEW OF LITERATURE

Yadav, Rajendra Kumar et al (2000). In their paper, 'Price spread and Marketing
Problems of Potato in Basti district, U.P.', found that the marginal farmers were selling
higher produce i.e. 61.94 per cent of the total sale of consumers and retailers while small
and big farmers were selling up to 84.57 per cent and 93 .84 per cent respectively to the
wholesalers. The producer's share in consumer's price was recorded 56.35 per cent when
only one intermediary was involved in marketing process, while it was 44.10 per cent.
when two intermediaries were involved. Storage was found to be the most important
marketing function. The major marketing problems identified were lack of storage,
transportation and marketing knowledge.

Singh, Ranveer et al (2000). In their paper entitled, 'Technological changes in

Marketing of Hi ll Farm Products', concluded that the main thrust of technological change
should be on introducing road network Development of time saving and cost effective
transport facilities would stimulate more production and marketable surpluses. There is
also need to improve grading and packing facilities.

Brahm Prakash et al, (2000). in his paper entitled, 'Growth of Fruits and
vegetables Processing Industry in India', reported that inspite of significant growth in
production of horticultural crops, the proportion of production processed commercially has
not increased. He suggested for the establishment of more number of Agro-processing
units/industry for generating higher profit and employment and to meet out the demand of
processed products in domestic as well as in international markets.

Marwaha, R.S. et al, (2000). in his paper entitled, 'Processing quality of low and
high sugar potato cultivars as influenced by storage temperatures,' reported that before19
storages, fresh chips prepared from exotic cultivars were for suspensor Tn color in
comparison to lndian varieties. The dry matter content of exotic cultivars was also higher
than the Indian cultivars, while free amino acids and total phenols were significantly lower
in the exotic cultivars at the time of storage

Khatana (2003). stated that innovation is an integral part of potato farming. The
author reported that keeping potatoes in earthen pot is very much primitive practice in rural
areas. Gujarat farmers produced potatoes in the river basin where they produce 60
tons/hectare of potatoes, which is more than three times of national average. Farmers of the
Dees area were producing potatoes in the river bed and developed flatten method of potato

10
cultivation in an irrigated field. Similarly, in Hassan districts of Karnataka, rainfed potato
crops are inter-cropped either with castor or millet

Basu and Dinda(2003). evaluated empirically the potato market integration of

Hooghly district with the help of bivariate price correlation and cointegration test
developed by Engle-Granger. They collected the weekly prices of potato (wholesale and
retail) for the period from January 1998 to December 2000 from three market intelligence
(MI) centers Champadanga, Tarakeswar and Sheoraphul/y out of seven Ml centers of
Hooghly district.

Chen and Paulraj (2004). Performed an exhaustive review on supply chain literature
and say that supply chain management has been used to explain the planning and control
of materials and information flows as well as the logistics activities not only internally.
Focus on buyer supplier relationships has been increasingly calling attention from
academics and managers. The traditional literature background focuses on dyadic or
buyer and supplier relationships, specifically regarding the development and evaluation of
suppliers.

Keith O Fuglie (2007) International institutions such as the International Potato

Center (CIP) strive to provide “global public goods” in the form of improved technologies
applicable to large regions of the developing world. To identify priorities for potato
improvement, CIP conducted a survey of knowledgeable potato scientists in developing
countries to elicit their perspectives on the most important constraints facing poor and
small-scale potato growers in their countries. Respondents scored productivity or other
constraints according to their importance in the region or country where they worked.
Mean and weighted mean scores were estimated to provide a group judgment of the most
important constraints facing potato farmers in developing countries.

Linton et al. (2007). say that supply chains are a step towards the broader adoption
and development of sustainability, since the supply chain considers the products from raw
materials to delivery to the end customer. Organic products are considered value added
products in agriculture and food markets, especially in a developing country context,
where the availability is still low and restricted by consumers' income. Yet, technical
process and product adequacy is a matter of paramount importance to access organic
supply chains of large retailers, whether located domestically or abroad Particularly in
developing countries, organic producers must raise their standards to maintain their export
markets or to gain access to high value/volume ones, such as the ones provided by large
retails chains.
11
 Seuring and Muller et al, (2008). The study defines sustainable supply chain
management as "the management of material, information and capital flows as well as co-
operation among companies along the supply chain while taking goals from all three
dimensions of sustainable development, i.e., economic, environmental and social, into
account which are derived from customer and stakeholder requirements". The authors
propose that chain members need to fulfil environmental and social criteria to remain
within the supply chain.

Pawar M.S. et al, (2008). this unpublished PhD thesis consists seventh chapter and
focus on marketing of agriculture scenario of Dhule district including impact of physical
and non physical factor on it. Syed Shah Allam, Azura Mohamed Sayuti. (2011)
"Applying the Theory of Planned Behaviour (TPB) in marketing of organic food
purchasing", International Journal of Commerce and Management.

Pandit et al. (2010). The study was conducted in Kangra (irrigated) and Mandi (rain-fed)
districts of Himachal Pradesh during 2005-06. The study revealed that the farmers of
irrigated area allocated higher proportion of cultivated land to potato, they had more non-
farm income and grew mainly Kufri Jyoti variety of potato. On the other hand, in addition
to K. Jyoti, farmers of rain-fed area grew other varieties as well. In adoption of potato
technologies the farmers of rain-fed area lagged behind their counterparts of irrigated
area. The study also found that the adoption of technologies was an important contributor
of enhancing potato yield. It was evident from the regression analysis that one percent
increase in adoption of potato production technologies would increase potato yield by
0.96 and 0.88% in irrigated and rain-fed areas, respectively. The major constraints faced
by potato farmers of both irrigated and rain-fed regions were lack of sufficient quantity of
healthy seed, lack of late blight forecast mechanism, low efficiency of mancozeb against
late blight, etc.

Scott and Suarej et al, (2011). In their study noted that area, production, and yield of
potato showed a definite pattern in Indian agriculture. Authors noted that when harvested
areas increase in potato, at the same time yield increases, and growth in production results
in a series of halts and valleys. Authors have highlighted this fact after analyzing the last
sixty years ‘data. The change in potato production and yield also impacts industry
production. Authors suggested that eco-friendly cold storage, potato attributes
promotional measures, and exploration of small-scale potato industries nullifies any
impact on the industry.

12
 Pandit and Chandran (2011). stated in their work that the rate of growth of potato
yield was almost stable and it was grown at a rate of 1.5 percent only during the last 58
years period. The best growth in potato yield was found in the seventies, after that it was
stagnant and it was almost negative in recent days. Again, they have opined that production
was also shown a similar trend and now it has also reached a plateau. Authors have also
indicated the need for an increase in the yield level of potatoes through the use of
innovative tools of biotechnology, agribusiness, multiple disease resistance pest, and the
implication of best post-harvest technology

SK Singh et al, (2011). According to estimates published by the International Food

Policy Research Institute (IFPRI) and the International Potato Centre (CIP), India is likely
to have the highest growth rates in potato production and productivity worldwide (Nair and
Thakur, 2007). These growth rates indicate a total production in India by 2020 of around
43.3 million mt.

Biuletyn Instytutu et al, (2012). Potato is a valuable food product. It is of relatively

low caloric value and moderate glycemic load. Potato contains valuable protein and
significant quantities of essential vitamins and mineral compounds, as well as necessary
dietary fiber. Anti-nutritive substances are found in potato in very low quantities, mostly,
localized in the skin on just under it. Thanks to that, the most of anti-nutritive compounds
is removed during culinary treatment. Potato does not accumulate harmful compounds
from poisoned environment.

Saxena et al, (2013). analyzed data on potatoes for the period from 2000-01 to 2010-
11 at the national level and observed that yield and production of potato has increased at a
growth rate of 1.10 and 5.98 percent respectively. According to the study results, the
highest growth rate in the area was observed for the state of Bihar (12.74%) followed by
Gujarat (9.53%). Whereas, in the case of potato production, states like Bihar, Uttar
Pradesh, and Gujarat have achieved remarkable growth in the production of potatoes to the
extent of 23.64, 15.10, and 12.39 percent respectively. At the national level, the
contribution of yield was comparatively lower than the area used in the total production of
potatoes.

CU Ugonna et al, (2013) the study was commissioned to examine the value chain
analysis of Irish potato as an industrial raw material in Nigeria. Potatoes in Nigeria are
cultivated mainly by small, rural farmers in marginal areas of the country mostly in the Jos,
Manilla, Plateau and the Obada Hills. The potato varieties contain a wide range of genetic
properties which are relevant for current and future breeding purposes. The research draws
13
attention to the three sub-chains identified within the Nigerian potato value chain; namely
the production of potato for immediate consumption, the manufacturing of traditional
products, potato production for industrial processing and marketing of fresh potato and
potato products. Whilst all the three sub-chains can be used to improve income, the first
two contribute greatly towards the conservation of biological diversity and are suitable for
small farmers. Further investigation revealed that there are good varieties of potatoes
available in Nigeria, although their potency has been reduced due to several usages.

Jadhav et al. (2013). Organic food in the market, its relevant in the present and the
future agriculture it studies that there is a growing concern about the health and the
environmental hazards of chemical-based intensive agriculture.

J Alberto Garcia-Salazar et al, (2014). The objective of this research was to use a
spatial and inter-temporal equilibrium model to develop a plan to assist the Mexican
potato production sector in moderating extreme swings in potato prices. Results indicate
that excess supplies of potatoes in some months could be eliminated with a storage policy
or if changes in irrigated potato production were implemented. The storage policy and
changes in production practices would reduce price volatility and increase producer
incomes; however, a storage policy cannot be recommended due to the large capital
investment required for storage infrastructure development. Seasonal production planning
would increase producer incomes by more than 1,500 million pesos and not require
extensive capital investment.

Jane Muthoni et al, (2016) Potato (Solanum tuberosum L.) is a major food and cash
crop in the Kenyan highlands, widely grown by small-scale farmers. Farmer practices and
constraints in potato production differ from region to region. A survey was conducted in
three major potato producing districts namely Biomet, Molo and Meru Central with the
following objectives: 1) to document farmers’ practices, key potato production and
marketing constraints, 2) to determine farmers’ potato cultivar and trait preferences and 3)
to assess the prevalence and farmers’ management of bacterial wilt. The survey was carried
out between November 2011 and March 2012. During the survey, a semi-structured
questionnaire was administered to 253 individual farmers. The results show that the
average household farm sizes are less than 2.4 hectares in all the districts. Majority of
farmers allocate more than 25% of their farms to potatoes. Potato is produced both for food
and cash by 90% of respondents in all districts. In Bomet district the red-skinned Dutch
Robyjn is widely grown. In Molo district, the white-skinned Cangi is prominent while in
Meru Central, the red-skinned Asante is predominantly grown by farmers. Cultivar

14
preferences are mostly dictated by availability of markets, yield potential and taste. The
major potato production constraints are diseases with bacterial wilt being the most
prominent.

Raghuvanshi, et al, (2018). estimated growth in the area, production, and

productivity of potatoes in Chhattisgarh. Authors found that area, production, and
productivity of potatoes have increased at the rate of 9.01, 10.93, and 1.76 percent per
annum, respectively.

Netsayi Noris Mudege et al, (2020) Abstract Sustainable Development Goals 5

calls for addressing gender equality and women empowerment by, among other things,
eliminating all forms of discrimination against women. At CIP we interpret this to mean
strengthening the use of gender approaches in research and ensuring that research
products are responsive to the needs of men and women. This chapter reviews lessons
learnt over the years on integrating gender into potato research and development. The
chapter discusses how gender has been approached in five key themes in potato research,
namely (1) conserving and accessing genetic resources,(2) genetics and crop
improvement,(3) managing priority pests and disease,(4) access to seed (seed flows and
networks), and (5) marketing, postharvest processing and utilization. This chapter
discusses how gender relations that favor men influence women’s participation in and
their ability to benefit from potato production, marketing, and research for development.
The review shows that potato research has been increasingly focusing on social
determinants of potato farming because of the realization that purely technical solutions
will not solve inefficiencies in potato production. Usinga gender relations approach, the
chapter attempts to draw out lessons that can contribute to the design of future potato
interventions including research aimed at reducing the gender gap in agriculture in
general and potato farming in particular.

15
 RESEARCH METHODOLOGY

The chapter deals with the methodology used in achieving the objective of the study. For
the sake of case in understanding and clarity in presentation, this chapter is devoted to the
presented in broad three section, the first section focuses on sampling design used to select the
district, block, village and farmer, and collection of the data and analytical tools and techniques
applied. The second section is the related to market and functional and techniques tools, The
third section provide the maximum information about the area in which the study was
undertaken.

3.1 Sampling design

3.2 Nature and source of data
3.3 Definition of terms and concept

3.1 Sampling design

Multistage random sampling procedure was used in the present investigation to select units of
the sample

1. First stage – selection of District

2. Second stage – selection of Block
3. Third stage – selection of Village
4. Fourth stage – selection of Farmer
3.1.1 Selection of district

Barabanki District was selected purposely of the present investigation. The potato was one of the
main crops in the district because climatic conditions were suitable for the cultivation of potato.

Table 3.1 Profile of Barabanki District.

Sl.NO. DESCRIPTION UNIT

1. Total area 3,730 km2

2. No. of block 17

3. No. of tehsil 5

4. No. of police station 22

5. Lok Saba 1

6. No. of village 393

7. No. of population 175242

16
 8. No. of farmer 7300

9. Cultivation area 232000

10 Net area sown 22300\ha

11 Net irrigated area 19480\ha

12 Net potato sown area 17950\ha

13 Gross irrigated area 2300\ha

14 Annual rainfall 997.00mm.

Source: District office Pratapgarh (2021).

3.1.2 Selection of block

Barabanki District contains 17 blocks. Ramnagar block was purposely selected for the
study due to the large area under potato cultivation.

Table 3.2: Profile of Ramnagar block.

Sl.no. Description unit

1. Total area 233.41 km2

2. Cultivated land in Ramnagar block 116.200\ha

3. No. of villages 102

4. No. of farmer 14100

5. Male farmers 9500

6. Female farmers 4600

7. Main crop of block Rice, wheat, potato

8. Post office 2

9. Market place Nawabganj, Manikpur

10. Cooperative society 3

Source: block office Ramnagar (2021)

17
 Cropping patterns

All kharif, Rabi, and Zaid crops are grown is Ramnagar block. The main crops are rice,
wheat, sugarcane, barley, maize, pea, mustard, potato, groundnut, etc.

Table 3.3 Area under different crop in Ramnagar block.

Sl.No Total crop Area (ha)

1. Rice 2300

2. Wheat 2845

3. Sugarcane 1040

4. Potato 5482

5. Mustard 1822

Source: block office Ramnagar, (2021)

Table 3.4 Source wise distribution of irrigated area.

s.no. Source Area in (ha)

1. Canal 10458

2. Tube-well (public) 5548

3. Tube-well (private) 2188

4. Well 244

5. Pound 185

6. Others 860

Total 19480

Source: land record office, economic and statistics department

3.1.3 Selection of village

18
A list of all the potato growing village was prepared in ascending order along with their
area under potato cultivation. 80% village from the Ramnagar block were selected
randomly .

Table 3.5 selection of village in Ramnagar block.

Village Name No. of Respondents

Total no Village- 10 Total no Respondent- 300

Source: block office Deva (2022)

Table 3.1.5 Type of selected farmers

Name of Total no. of potato Small Medium Large

village farmer

Mohammad 39 4 10 4
pur

vishunpur 34 3 3 6

Ramnagar 44 2 12 2

TikkaPur 28 7 5 10

Fathepur 26 5 5 10

Kodiyarpur 25 5 4 5

Rashulpur 30 4 3 15

19
 Jaitpur 25 5 5 14

Tash Pur 26 8 6 9

Patmau 23 3 7 8

Source: block office Ramnagar (2021)

3.1.6 Figure of Selected of Villages.

Uttar Pradesh

Barabanki District

Ramnagar

Fatehpur

Dewa Suratganj Banki Harak Siddhaur

Trivedig Sirauli
Nindura Ghauspur
Banikodar
anj

Total no Respondent - 300 Barabnki

Figure 3.1 Diagram of Selected Villages

3.2 Nature and source of data

The present study was based on the primary and secondary data. The collection of the data
from different source is discussed under the following.

3.2.1 Primary data

20
The primary data source has been collected through questionnaire by personally
interviewing each respondent in personal meeting.

3.2.2 Secondary data

The secondary data was collected from following sources

Websites
Books
Newspaper
Personal consultation
3.3 Definition of terms and concepts

3.3.1 Market: -

A market is a place where buyer and sellers can meet to facilitate the exchange or
transections of goods and services.

3.3.2 Market segmentation: -

Market segmentation is a marketing strategy and uses well defined criteria to divide a
brand total addressable market share into smaller group. Each group, or segment, shares
common characteristics that enable the bran to create focus and target product.

3.3.3 Marketing strategy: -

A marketing strategy is a long-term plan for achieving a company goal by understanding

the needs of customer and creating a distinct and sustainable competitive advance

3.3.4 Export: -

Goods and services produced on one country but supplied to buyers in another are known
as export

3.3.5 Import: -

An import is a product or services produced abroad and purchased in your home country
imported goods or services are attractive when domestic industries cannot product similar
goods and services.

21
3.3.6 SWOT analysis: -

SWOT analysis is a framework for identifying and analyzing an organization's strengths,

weaknesses, opportunities and threats. These words make up the SWOT acronym. The
primary goal of SWOT analysis is to increase awareness of the factors that go into making
a business decision or establishing a business strategy. To do this, SWOT analyzes the
internal and external environment and the factors that can impact the viability of a
decision.

3.3.7 Potato grower: -

Grower means any business unit, including a family operation, sole proprietorship,
partnership, corporation, company, association, trust, or other business organization
engaged in the business of growing potatoes for market.

3.3.8 Potato production in India: -

As per 3rd Advance Estimate of DAC&FW, India produced 53.03 million tonnes of potato
from 2.16 million ha area with an average yield of 24.55 t/ha last year (2018-19). As a
consequence, India emerged as the second largest potato producer in the world after China.

3.3.9 Potato cold storage: -

Although you shouldn't put potatoes in the fridge, potatoes will still keep the longest when
stored in a cool, dark place—specifically somewhere that has a cold temperature of about
50°F and 90 to 95 per cent humidity, like, you know, a temperature- and humidity-
controlled root cellar.

3.3.10 Middlemen: -

Middleman is a broker, go-between, or intermediary to a process or transaction. An

intermediary will earn a fee or commission in return for services rendered in matching
buyers and sellers. Many industries and business sectors utilize middlemen, from trade and
commerce to wholesalers to stockbrokers.

3.3.11 Commission agents: -

The agency that helps the businessman in buying and selling of goods is known as
Commission Agency. The agents when appointed to buy goods are known as Purchase
Agents. When appointed to sell goods, they are known as Sales Agents.

22
 DATA ANALYSIS

4.1 To study the socio-economic profile of respondents in study area.

The data was collected from farmer and knowing the demographic characteristics of
various farmer was help to determine how close the sample respondent replicate the
population in the section question about Gender, Age, Education, Income and Family
Status were asked

Table 4.1 Gender of respondents in study area

Gender Total no. of respondent Percentage (%)

(300)

Male 178 59.3

Female 122 40.6

Total No. of Respondents- 300

41%
Male
Female
59%

Fig no. 4.1 Gender of respondents in study area

Table 4.1 showed the out of 300 respondents in study area, 178 were male farmers, which
means 59.3% were male farmers and 122 female farmers, which means 40.6% were
female, of selected respondents in study area. Because male is directly involved in every
steps marketing of potato.
23
Table 4.2 Age classification of the respondents in study area.

Age Total no. Respondents Percentage (100)

(300)

18-30 68 22.6

31-37 80 26.6

38-45 95 31.8

45 above 57 19.0

Total no. of raspondents-300

45
Above 18-30

38-45 31-37

Fig 4.2 Age classification of the respondents in study area.

The above table 4.2 revealed that, the majority of potato farmers (31.8%) were from38-45
age group followed by the 18-30 age group farmers. This clearly indicate that potato
cultivation is mostly done by the 31-37, and 38-45 age group farmers whereas 45 above
age group farmer were avoiding growing potato because potato cultivation require more
physical work like as ploughing, earthing up, weeding, irrigating, harvesting of Potato.

24
Table 4.3 Education level of farmer in study area

Education Total no. respondents Per centage (100)

(300)

Illiterate 52 17.3

Able to read and write 80 26.6

Up to high secondary 48 16

Intermediate 50 16.6

Graduation &more 70 23.3

Total no. of Respondents- 300

17.3; 17% Illiterate

23.3; 23%
Able to Read and Write
Up to High Secondary
Intermediate
Graduation and More
16.6; 17% 26.6; 27%

16; 16%

Figure 4.3 Education level of farmer in study area

The above table 4.3 indicated that 26.6 per cent of the total farm respondents were able to
read and write. Glancing the whole data was clearly revealed that the potato growers are
not much educated, as 17.3 per cent of the respondent were illiterate and 16 per cent were
high secondary and intermediate. However only 23.3 per cent of the respondents were
graduate and above graduate.

25
Table no.4.4 Annual income of the respondents in the study area.

Annual Income Total No. of Respondents Percentage (100)

(300)

50000-100000 60 20

200000-300000 120 40

300000-500000 80 26.6

Above 500000 40 13.33

Annual Income
40
60

80

120

50000-100000 200000-300000 300000-500000 Above 500000

Fig 4.4 Annual income of the respondents in the study area

Annual income of the farmer is an important aspect to the socio-economic status of the
farmer. From the above table4.4 it was clear that expect 40 per cent of the farm
respondent’s majority of all of them were having an annual income of more than 200000-
300000. Surprisingly 13.33 per cent of the total farm respondent were having an annual
income of less than 500000 deposited they were having good farm equipment’s. The
reason may be the adverse climatic condition, unsuitable for farming and marketing
problem, which unable the small and marginal farmers to fetch good price of their
produce.

26
Table no. 4.5 Family structure of the respondents in the study area.

Categories Total no. of respondents Per cent (%)

(300)

Nuclear family 180 60

Joint family 120 40

Total No. of Respondents -300

Joint family ; 120;

40%

Nuclear family; 180;

60%

Nuclear family Joint family

Fig 4.5 Family structure of the respondents in the study area

Various studies show the fast spread of urbanization in the rural areas which makes the
people live in nuclear rather than joint family. The data collected also reflect the same
trend as 60.0 per cent of the respondents were living in nuclear family whereas only 40.
Per cent of the respondents were living in joint family.

27
4.6 To study the marketing of potato in study area

Marketing is also an integral part of any production, by the help of proper marketing
process the producer can get proper price with low wastage. In the study area various types
of marketing process are noticed.

The marketing channels are linked with the chains of intermediaries involved at various
levels of marketing for smooth distribution of the potato.

The major marketing channels identified in the present study were:

Channel I: Farmer – Processing Industry - Wholesaler - Retailer - Consumer.

Channel II: Farmer -Trader - Wholesaler – Processing Industry.

Channel III: Farmer – Farmers’ Market - Consumer.

Channel IV: Farmer -Consumer.

28
4.7 Total marketing cost for potato under different marketing channels.

29
S. particular Channel I Channel II Channel III Channel IV
N
o.
01 Farmer Cost/ perce Cost percent Cos percent Cos percent
quint ntage age t age t age
al
Harvesting 1 0.42 3.2 1.25 6.4 6.12 1.3 3.12

Packaging 14 6 16 6.27 22 21.0 13. 32.49

and loading 5

Unloading 10 4.28 10 3.92 26 24.8 10. 24.55

2
Transportati 16.4 7.03 18.2 7.1 19. 18.6 16. 39.23
on 5 3

Sub Total 45.5 19.51 47.4 18.5 74 70.81 41. 100

54
02 Farmer
markets

Weighting - - 14 5.4 11. 11 - -

loading 5

Transportati - - 16.5 6.45 17 16.26 - -

on

Market fees - - 13.2 5.16 12 11.48 - -

Sub total - - 43.7 17.09 30. 29.18 - -

5
03 Processing
Industry

Weighting, 16 6.86 12 19.9 - - - -

Loading

Unloading 10 4.28 12.3 20.43 - - - -

Transportati 20 8.57 18 29.9 - - - -

on

Storage 18.2 7.80 17.9 29.73 - - - -

charge

Sub total 64.2 27.53 60.2 99.96 - -- - -

04 Trader

Weighting, - - 18.3 7.17 - - - -

Loading

unloading - - 12 4.70 - - - -
Transportati - - 20 7.8 - - - -
on

Commission - - 32 12.54 - - - -
agents
30
Sub total - - 82.3 32.27 - - - -

05 Whole
4.2.1 Marketing channel I:

The total marketing cost incurred by the farmers was 45.5 per quintal of potato which
accounted for 19.5 per cent of the total marketing costs the major cost component for
farmer was potato grower harvesting (0.42%) and packaging and loading (6%). The other
important components were unloading (4.28%) and followed by transportation (7.03%)
include the expenses for tea and personal transport, etc

The Processing Industry level marketing expenditures in this channel were 64 per quintal
with potato accounting for 27.5 per cent of total marketing cost. The biggest cost of
component was weighting and loading (6.86%) unloading cost (4.28%) and storage charge
(7.80%) and transportation cost (8.57%)

The wholesaler’s marketing cost was worked out as 65 per quintal. Which accounted for
27.87 per cent of the total marketing cost. It includes transportation cost (5.14%) the other
important component include weighting, loading (5.7%) unloading (4.28%) and
commotion agent (6.86%) and miscellaneous (6.48%) and other communication travelling
cost.

The retail level overall marketing channels were 58.5 per quintal. Which accounted of the
total marketing cost. It includes packaging cost (3.43%) the other important component
include weighting, loading (3.91%) unloading (5.5%) and miscellaneous (5.91%) and
other communication travelling cost.

4.2.2 Marketing channel II:

the total marketing cost incurred by farmers was 47.4 per quintal which accounted for
18.5 per cent of the total costs. Here again the major components towards grower
harvesting (1.25%) and packaging and loading (6.27%). The other important components
were unloading (3.92%) and followed by transportation (7.1 %) in channel II the farmer
also incurred additional expense toward unloading as it was not born by the commotion
agent.

In this channel, the total markets cost incurred by traders was worked out as 82.3 per
quintal which accounted for 32.27 per cent of the total costs. The transportation cost
(7.8%) commotion agents (12.54%) and weighting and loading (7.17%) unloading
(4.70%).

The Processing Industry level marketing expenditures in this channel were 60.2 per quintal
with potato accounting for 99.6 per cent of total marketing cost. The biggest cost of
31
component was weighting and loading (19.9%) unloading cost (20.43%) and storage
charge (29.7%) and transportation cost (29.9%)

The wholesaler’s marketing cost was worked out as 59.5 per quintal. Which accounted for
23.2 per cent of the total marketing cost. It includes transportation cost (5.8 %) the other
important component include weighting, loading (5.49 %) unloading (5.4%) and
commotion agent (6.2%) and miscellaneous (7.17%) and other communication travelling
cost.

4.2.3 Marketing channel III:

The total marketing cost incurred by farmers was 74 per quintal which accounted for 70.81
per cent of the total costs. here again the major components towards grower harvesting
(6.12%) and packaging and loading (21.0%). The other important components were
unloading (24.8%) and followed by transportation (18.6%) in channel II the farmer also
incurred additional expense toward unloading as it was not born by the commotion agent.

In this channel the farmers markets cost incurred by the farmers was 30.5 per quintal
which accounted for 29.18 per cent of the total market cost. Out of this the major
component packaging and loading (11%), transportation (16.26%) and market fees
(11.48%).

4.2.4 Marketing channels IV:

The total marketing cost incurred by farmers was 41.54 per quintal which accounted for
100 per cent of the total costs. Here again the major components towards grower
harvesting (3.12%) and packaging and loading (32.49%). The other important components
were unloading (24.55%) and followed by transportation (39.23%) in channel IV the
farmer also incurred additional expense toward unloading as it was not born by the
commotion agent.

32
4.2.2 Marketing efficiency of different marketing channels
S Particulars Channel I Channel II Channel III Channel IV
no.

1. Value of goods 45.5 47.4 74 41.54

sold (V)/net
price received

2. Consumer 2500 2500 2500 2500

purchase price

3. Marketing cost 233 318.95 104 41.54

(I)

4. Index of 5.1 6.72 1.40 1.2

marketing
efficiency

Shepherd’s formula was used to assess the effectiveness of various marketing method. The
result is shown in the price spread of different channel being lowest in channel-I 1.2 and
biggest in channels 6.72. according to shepherd’s calculation channels I (233/quintal) was
the most efficiency followed by channel II (318.9/quintal). Channels 2-4 were more
efficiency than channel-I, in efficiency in the marketing process are caused by low
producer net price, greater marketing costs, and margins.

33
4.3 To find out the contains faced by the farmers in marketing of potato
in study area.

The result obtain from the present investigation are present contains which is faced
by potato producers.
Table 4.3.1: Constraints faced by potato growers in study area

S Constraints No. of Percentage

no. respondents- (100)
300

1. Low yield of potato 34 11.3

2. Middle man involvement 33 11

3. Off season 10 3.3

4. Low rate of recovery 9 3.0

5. High cost of production 48 16.0

6. Lack of irrigation 35 11.6

7. Veering price 55 18.3

8. High level cost 23 7.8

9. Transportation facilities 29 9.6

10. Labor shortages 27 9.7

Total 300 100

34
 Total No. of Respondents -300
60 55
50 48

40 34 33 35
29 27
30 23
16 18.3
20
11.3 11 10 9 11.6 9.6 9.7
10 7.8
3.3 3
0
o t y n n e es es ge
at en on er tio tio ric nc ta
ot m as cov c g a p e i liti r
of
p ve se re du rri g fe
r
fe
c ho
ol ro fi rin rs
ld in
v Off of f p o e e pre on
ou
yie an ra
te to ck V er ta
ti
La
b
w m os La um or
Lo e Lo
w c s
ns
p
dl gh co
n
ra
id Hi g T
M n
gi
h an
C

Respondents percentage%

Fig 4.6 Constraints faced by the farmers in marketing of potato in study area

Although Uttar Pradesh has the greatest area for potato production. The output per hectare is
poor when compared to other potato producing states. Because farmers and traders faced
various contains in the study area. Out of 300 respondents 55 respondents faced veering price
as a major contains, followed by the production cost is high, while others are suffering for
lack of irrigation, low yield of potato and involvement of middle man. Out of total respondent
29 are responded and agreed on the contains faced in transportation facilities. Potato has a
complete with seral other food crop like rice, oil, wheat, etc. Cultivation of potato not same as
all food crop then the potato production has its own production season 10 respondents are
claimed that off season cultivation is also a big contains faced by the farmers. In present time
the shortages of labor are one of the risings contains, there are several more barriers like high
level cost and low rate of recovery. So, it is said from the above data the potato growers are
faced different contains in every step of production which causes the farmer to switch to
another crops.

35
 Conclusion
The study has revealed the marketing of potato in Barabanki District of Uttar Pradesh. 10
villages of Ramnagar block were taken as a study area. Rice, wheat, potato and mustard
were the main crop in study area. The first component included questions related to socio-
economic information of the respondents such as Gender, Age, Education level, annual
income and family types. The major respondents were male. Because mostly males were
directly involved with potato farming and marketing. The study showed that most of the
respondents were between the age group of 38-45 followed by the age group 31-37 and
others. The study explores that the large number of the respondents are able to read and
write only, they are mainly farmers. Further the study also revealed that most of the
respondents have an annual income of Rs200,000- 300,000. Respondents are mostly from
nuclear family while there was a good number of respondents from joint family too.

Farmer – Processing Industry - Wholesaler - Retailer – Consumer, Farmer -Trader -

Wholesaler – Processing Industry, Farmer – Farmers’ Market – Consumer and Farmer -
Consumer are the types of channels were discovered in the study area. Farmer had a high
marketing cost for transportation followed by packaging and loading, unloading and
harvesting. But other market actors had ahigh marketing cost for weighing and loading.
Channel II had the most expensive marketing cost. Because of huge number of businesses.
The traders had more profit than farmer and wholesaler. In channel III potato growers
received a bigger part of consumer’s rupee than in another channel. In channel III the price
spread was relatively small since the potato was sold directly to the consumer through
farmer’s market. And in channel IV the consumers directly purchased from farmers no
intermediate player available, so it takes low marketing cost. It is beneficial to both
growers and consumers.

The study also evalute that several faced by the potato growers which causes barrier for
marketing of potato. The study concluded that veering price is the main problem in
marketing, followed by cost of production, lack of irrigation, while a number of
respondents states that low yield of potato and middleman involvement is also two big
contains, followed by transportations facilities, labor shortage etc.

36
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38
 QUESTIONNAIRE

Name: _______________________

Age: ____________________________

Gender: Male: Female:

Place: ______________________________

Q1. What is your education qualification?

a) Illiterate
b) Intermediate
c) High School
d) Graduate

Q2. Size of the family?

a) 2-4 members
b) 4-6 members
c) Above 6

Q3. What is your occupation?

a) Students
b) Unemployed
c) Employed
d) Retired
e) Others

4. How many incomes level of your per month

a) Up to 5,000
39
 b) 5,000 - 10,000
c) 10,001 - 20,000
d) 20,001 – 40,000
e) 40,001 and Above

5.how much experience you have in potato cultivation?

a. Below 5 year
b. 5-10 year
c. Above 10 year

6.How much area you cultivate potato?

a. Less than 1 hec
b. 1-2 hec
c. 2- 4 hec
d. above 5 hec

7.Yield of potato received from an acre

a. below 5 tonnes
b. 5- 10 tonnes
c. 15- 20 tonnes
d. above 20 tonnes

8. which process you follow after harvesting?

a. Storing
b. Sell in local market
c. Sell to small traders
d. Others

9. Mode of transport

a. Bullock cart
b. Tractor
c. Lorries
40
 d. Truck

10. Are you satisfied with the present system of marketing?

a) Highly unsatisfied
b) Unsatisfied
c) Neutral
d) Satisfied
e) Highly satisfied.

11. Are you able to encash your produces whenever you want?

a) Some times
b) Rarely
c) Most of the time
d) Always

12. What about the attitude of the banks toward potato traders?
a) Highly unfavorable
b) Unfavorable
c) Neutral
d) Favorable
e) Highly favorable

41