Economic evaluation of turmeric marketing and constraints in Satara district of Maharashtra

Introduction

Turmeric (Curcuma longa L.) is an important commercial spice crop of India with culinary, medicinal, industrial and export significance. India occupies a leading position in turmeric production, consumption and trade. The economic returns from turmeric cultivation depend not only on production efficiency but also on the organization of the marketing system through which produce moves from farmers to final users. Maharashtra is an important turmeric-growing state and Satara district has favourable agro-climatic conditions, irrigation facilities and market linkages supporting commercial cultivation. Nevertheless, farmers may face high marketing costs, price uncertainty, information gaps and dependence on intermediaries. Efficient channels that minimize avoidable costs while ensuring remunerative producer prices are therefore important for improving farm income. Earlier research has examined turmeric marketing and profitability in different production regions. Studies including Dodke et al. (2002) [1] , [2] reported variations in marketing channels, costs, price spread and producer returns. More recently, Zod et al. (2025) [3] examined turmeric economics and constraints in Wardha district of Maharashtra using primary data and standard economic analysis. The present study focuses specifically on marketing performance and constraints in Satara district.

Materials and methods

Sampling and data collection

Satara and Karad tehsils were purposively selected based on the area under turmeric cultivation. Three villages from each selected tehsil were covered and 90 turmeric growers were selected randomly. Primary data for the agricultural year 2025-26 were collected through personal interviews using a pre-tested structured schedule. Information was also obtained from relevant market intermediaries to map the movement of turmeric from producer to the final user.

Marketing cost

Total marketing cost was estimated by summing the costs incurred by the producer and different intermediaries in performing marketing functions:

𝐶 = 𝐶𝑝 + Σ𝐶𝑖

Where, C = total marketing cost, C p = cost incurred by the producer and C i = cost incurred by the i th intermediary.

Marketing margin and price spread

The absolute marketing margin of an intermediary was estimated as the difference between the sale value and purchase value after accounting for the quantity handled. Price spread was calculated as the difference between the consumer's price and the net price received by the producer.

Marketing efficiency

Marketing efficiency was estimated using the modified measure of Acharya et al. (1999) [4] :

𝑀𝑀𝐸 = 𝑅𝑃/ ( 𝑀𝐶 + 𝑀𝑀 )

Where, RP = net price received by the producer, MC = total marketing cost and MM = net marketing margin.

Constraints analysis

The constraints faced by growers were ranked using the Garrett ranking technique. For each constraint, percentage position was calculated as 100(𝑅 𝑖𝑗 -0.5)/𝑁 𝑗 , where R ij is the rank assigned by the ith factor by the jth respondent and N j is the number of factors ranked by that respondent. Percentage positions were converted into Garrett scores and mean scores were used to obtain the final ranking.

Results and discussion

Marketing channels

Three major marketing channels were identified in the study area: Channel-I (Producer → Village Trader → Consumer), Channel-II (Producer → Village Trader → Wholesaler → Retailer → Consumer), and Channel-III (Producer → Wholesaler → Processor → Consumer). The existence of multiple channels reflects differences in the functions performed by intermediaries and the destination of the turmeric produce.

Channel-wise marketing cost and producer realization

Price spread and marketing efficiency

Price spread was lowest in Channel-I at ₹896.35 per quintal and highest in Channel-III at ₹1,170.18 per quintal. Despite the wider price spread, Channel-III provided the highest net price realization (₹13,611.37/q), reflecting the comparatively higher producer price received through this route.

Marketing efficiency was highest in Channel-I (17.67), followed by Channel-III (14.92) and Channel-II (14.69). Therefore, Channel-I was the most efficient in terms of the modified marketing-efficiency measure, while Channel-III was advantageous in terms of absolute net price realization.

Constraints faced by turmeric growers in marketing

Price fluctuation in the market was ranked first, indicating that uncertainty in turmeric prices was the most important marketing problem. High transportation cost ranked second and increases the cost of moving produce to markets. Lack of market intelligence ranked third, suggesting inadequate access to timely information on prices, arrivals and market opportunities. Higher middlemen and commission rates ranked fourth, while delayed payment ranked fifth. These constraints can reduce the producer's effective return and weaken the bargaining position of farmers. The findings indicate that improving the flow of reliable market information, strengthening direct market linkages, rationalizing intermediary and commission charges, improving transportation infrastructure and ensuring prompt settlement of farmer payments could improve the marketing performance of turmeric in the study area.

Conclusion

The study revealed that turmeric growers in Satara district used three principal marketing channels. Channel-I recorded the highest marketing efficiency (17.67) and the lowest price spread (₹896.35/q), whereas Channel-III provided the highest net price realization (₹13,611.37/q) and the lowest total marketing cost (₹688.63/q). Commission and grading charges were the dominant components of marketing cost. Price fluctuation, transportation cost and inadequate market intelligence were the leading constraints. Promoting shorter and transparent marketing channels, strengthening market information systems, reducing avoidable marketing charges and ensuring timely payments can enhance producer returns and improve the efficiency of turmeric marketing.

Policy implications

Strengthen real-time market intelligence and disseminate price information through digital and extension platforms.

Promote direct linkages between turmeric growers, processors and organized buyers to reduce unnecessary intermediary costs.

Improve access to affordable transportation and aggregation facilities at village level.

Encourage transparent and competitive commission structures and timely settlement of farmer payments.

Support farmer groups/FPOs to improve collective marketing and bargaining power.

Limitations

The study is based on a cross-sectional sample of 90 turmeric growers from selected areas of Satara district for 2025-26. The findings therefore represent the sampled production and marketing environment and may vary with changes in market prices, production conditions, marketing institutions and the destination of produce. 31(9), 445-456.

References

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8. How to cite this article: Patil KP, Shinde V, Deshmukh B, Kamble B, Patil K, Jangam A, et al. Economic evaluation of turmeric marketing and constraints in Satara district of Maharashtra. International Journal of Agriculture and Food Science. 2026;8(9):867-870. doi: https://www.doi.org/10.33545/2 664844X.2026.v8.i9l.1964