Rice Value Chain Systems in Haryana: An Economic Analysis

Abstract

The economic analysis of rice value chain in Haryana has been carried out using a sample of 30 farmers, 10 wholesalers and 20 retailers which were purposively selected from Karnal district of Haryana. One government (HAFED Taraori rice mill) and 5 private rice mills in Karnal were selected as the processing units. The results revealed that retailers incurred the highest total cost in both Basmati and non-basmati (PR-fine) rice value chain ( 93.37 kg-1 and 41.73kg-1), whereas rice mills contributed the largest value addition to both Basmati and PR-fine rice (61.34% and 56.19%). The highest profit in Basmati rice and PR-fine rice was accrued by rice mills ( 37.96 kg-1 and 8.88 kg-1). The major production and processing constraints were lack of remunerative prices and market instability with Garrett mean score of 76.33 and 63.71, respectively, while the major wholesaling and retailing constraints was increased procurement cost as a result of per litre increased cost of fuel. Better remunerative price policy for paddy should be made to entice farmers to produce more and ensure regular supply of paddy to the processing units, which will trickle down to the entire value chain.