An Analysis of Marketing Costs and Margins of Potato in District Peshawar Pakistan

Abstract

Vegetables are perishable in nature, and it requires a well-established market to facilitate the farmers for selling their produce at a reasonable price and make it accessible for ultimate consumers in preferred shape and location in the required duration. This research is carried out to analyze the existing marketing channels, marketing costs and margins of different market functionaries of potato crop in the selected villages of district Peshawar, Khyber Pakhtunkhwa Pakistan in 2019. For this purpose, a total of seventy producers, twenty wholesalers and twenty retailers are randomly selected and interviewed for data collection. From the current research it can be revealed that majority of potato growers followed the same marketing channel i.e. Producer → Wholesaler → Retailer → Consumer. The analysis shows that marketing-margins of potato growers, wholesalers and retailers is estimated as 31.8 percent, 24.1 percent, and 42 percent respectively. Similarly, the share of producer in consumer rupee is obtained as 31.3 percent, respectively. Marketing margin and cost indicated that by reducing the huge margin of retailers the share of growers and wholesalers can be raised in the prevailing marketing channels. The research findings recommended that government must focus on establishing markets at village level, by minimizing the role of intermediaries which will help farmers to generate more profit