An Assessment of Marketing Margins and Physical Losses at Different Stages of Marketing Channels for Selected Vegetable Crops of Peshawar Valley

Abstract

In Peshawar Valley (Pakistan), the various intermediaries identified in the vegetable marketing chain are beoparies, wholesalers, commission agents and retailers. Based on primary data collected in the year 2001, it is revealed that the producer gets only up to 37, 45 and 40%, on average, of the consumer rupee for tomatoes, potatoes and onions, respectively. In the case of tomatoes, the margin acquired by the beopary, wholesaler, commission agent, and retailer is 17, 23, 5, and 18%, respectively. In the case of potatoes, the margin shared by the aforementioned intermediaries is 13, 19, 5 and 18%, respectively. In the case of onions, the margin shared by the same intermediaries is 14, 21, 5 and 20%, respectively. The average physical losses of the vegetable crops studied are reported as 22, 12 and 9% for tomatoes, potatoes and onions, respectively. It is difficult to assess whether the large marketing mark-ups reported for the different vegetable crops are necessarily exploitative. The intermediaries are providing additional services at each stage and carrying significant risks particularly in the case of tomatoes. Therefore, there is a need to assess/study these marketing margins in detail to arrive at a confident conclusion. Recommendations are presented for improving the functioning of vegetable markets in terms of improved marketing margins for growers and reduced physical losses. These include: proper physical marketing facilities; adequate storage facilities; strictly enforced grading and standardization; availability of processing facilities; marketing credit; and free flow of information.