Marketing channels and price spread of marigold in Kolhapur district of Maharashtra: An economic analysis

Introduction

Marigold (Tagetes spp.) is one of the important commercial loose flower crops cultivated in India. The flowers have considerable demand throughout the year due to their extensive use in religious ceremonies, festivals, marriages, social functions and decoration. The demand for marigold increases considerably during major festivals and marriage seasons, creating regular marketing opportunities for growers. Owing to its wide consumer demand, marigold has become an important commodity in the domestic flower market. Marketing plays a crucial role in determining the economic returns received by marigold growers. Unlike many agricultural commodities, fresh flowers are highly perishable and deteriorate rapidly after harvesting. Therefore, timely disposal, efficient transportation, proper handling and access to suitable markets are essential for maintaining quality and obtaining remunerative prices. Any delay in marketing may result in physical losses, deterioration in quality and reduction in the price received by producers. The marketing of marigold involves various market functionaries such as producers, wholesalers, commission agents, retailers and consumers. Depending upon the accessibility of markets and prevailing market conditions, growers may sell their produce directly to consumers or through different intermediaries. The major marketing channels generally observed in marigold marketing include Producer-Consumer, Producer-Wholesaler-Retailer-Consumer and Producer-Commission Agent-Wholesaler-Retailer-Consumer. The number of intermediaries involved in a channel has an important influence on marketing costs, margins and the final price paid by consumers. The efficiency of different marketing channels can be assessed through the estimation of marketing costs, marketing margins, price spread and producer's share in the consumer's rupee. Price spread refers to the difference between the price paid by the consumer and the net price received by the producer. It indicates the portion of the consumer's expenditure absorbed by marketing costs and margins of various market intermediaries. A lower price spread generally indicates a relatively efficient marketing channel, provided that the necessary marketing services are adequately performed. The producer's share in the consumer's rupee is another important indicator of marketing performance. A higher producer's share indicates that a greater proportion of the final consumer price reaches the grower. Similarly, marketing efficiency provides an overall measure of the effectiveness of the marketing system by relating the value of the product to the costs and margins involved in its movement from producer to consumer. Identification of efficient marketing channels can therefore help growers make better decisions regarding the disposal of their produce. In Maharashtra, marigold is marketed through local flower markets as well as regional and urban markets. The marketing system is influenced by seasonal demand, market price fluctuations, transportation costs, perishability and the involvement of intermediaries. During periods of high demand, prices may increase substantially, whereas during periods of excess supply, growers may face considerable price reductions. Such price fluctuations make efficient marketing particularly important for ensuring better returns to producers. Kolhapur district has considerable potential for commercial marigold production and marketing. Farmers in Hatkanangale and Shirol tehsils market their produce through different channels depending upon market accessibility, quantity of produce, prevailing prices and availability of buyers. Marigold produced in these areas is marketed through direct sales as well as through wholesalers, retailers and commission agents. However, differences in marketing costs, margins and price realization among these channels may affect the share of growers in the final consumer price. Despite the increasing importance of marigold marketing, there is a need to assess the existing marketing channels and determine their relative efficiency in the study area. Estimation of price spread and producer's share can help identify the extent of price realization by growers and the share retained by different market intermediaries. Such information is useful for identifying opportunities to reduce avoidable marketing costs and strengthen more efficient marketing arrangements. Therefore, the present study entitled "Marketing Channels and Price Spread of Marigold in Kolhapur District of Maharashtra: An Economic Analysis" was undertaken to examine the existing marketing channels, estimate the price spread, determine the producer's share in the consumer's rupee and assess the marketing efficiency of marigold in Kolhapur district. The study is expected to provide useful information for improving marketing practices, strengthening direct marketing linkages and enhancing the returns received by marigold growers.

Methodology

The study was conducted in Kolhapur district of Maharashtra. Hatkanangale and Shirol tahsils were purposively selected based on the concentration of marigold cultivation and marketing. From each tahsil, three villages, namely Rukadi, Male and Herale from Hatkanangale and Danoli, Kothali and Kavthesar from Shirol, were selected purposively. A total of 90 marigold growers were selected through multistage sampling, with 15 farmers from each village. The respondents were classified into small, medium and large farm-size groups, comprising 30 farmers in each group. Primary data for the agricultural year 2024-25 were collected through a pre-tested interview schedule. Information on quantity marketed, marketing channels, prices, marketing costs and margins was collected from growers and market intermediaries. Three major marketing channels were identified:

The data were analysed using tabular analysis, averages and percentages. Marketing performance was evaluated in terms of marketing cost, marketing margin, price spread, producer's share in consumer's rupee and marketing efficiency. Price spread was estimated as the difference between the consumer's price and the net price received by the producer. Producer's share was calculated as the ratio of net producer price to consumer price, expressed in percentage. Marketing efficiency was estimated using Acharya's modified method. 1. shows the production and disposal pattern of marigold. The overall average production was 168.08 q/ha, of which 160.63 q/ha (95.57%) was marketed. Transit losses accounted for 7.07 q/ha (4.21%), while home consumption and free distribution were negligible at 0.14 q/ha and 0.23 q/ha, respectively. Among the farm-size groups, marketed quantity was highest for small farmers (165.79 q/ha) and lowest for large farmers (155.44 q/ha). Overall, a major proportion of marigold production was marketed, indicating a high marketed surplus. 3. presents the channel-wise marketing cost of marigold. The marketing cost increased with the involvement of intermediaries and marketing operations. Channel-I recorded the lowest marketing cost of ₹258.24 per quintal, as the produce was sold directly to consumers. In contrast, Channel-III involved the highest marketing cost, due to the participation of commission agents, wholesalers and retailers. Transportation, other expenses, loading and unloading, and market fees were the major components of marketing cost. Overall, the findings indicate that shorter marketing channels help reduce marketing costs and improve marketing efficiency. 4. revealed that Channel-I (Producer-Consumer) recorded the highest net price to the producer (₹3,321/q), the lowest price spread (₹258.24/q), highest marketing efficiency (13.86) and highest producer's share (92.78%). Channel-II and Channel-III recorded higher price spreads of ₹1,444.61 and ₹1,891.72 per quintal, respectively, with comparatively lower marketing efficiency of 3.19 and 2.73. The findings indicated that price spread increased with the number of intermediaries, while the producer's share and marketing efficiency declined. Thus, direct marketing through Channel-I was the most efficient and remunerative channel for marigold growers. marketing costs and eliminated intermediary margins. Accordingly, Channel-I recorded the lowest price spread of ₹258.24 per quintal and the highest producer's share in the consumer's rupee (92.78 per cent). Among the indirect channels, Channel-II was more efficient than Channel-III, as it involved fewer intermediaries. Channel-III recorded the highest price spread (₹1,891.72/q) and the lowest marketing efficiency (2.73), mainly due to the additional involvement of a commission agent. Overall, marketing efficiency declined with an increase in the number of intermediaries, while marketing costs and price spread increased. Hence, Channel-I was found to be the most efficient and remunerative marketing channel for marigold growers.

Results and discussion

Sr

Sr

Channel

Conclusion

Based on the findings of the present investigation, the following conclusions were drawn:

The study revealed that marigold growers followed three major marketing channels, namely Channel-I (Producer → Consumer), Channel-II (Producer → Wholesaler → Retailer → Consumer) and Channel-III (Producer → Commission Agent → Wholesaler → Retailer → Consumer). Channel-III handled the highest share of marketed produce (42.47 per cent), indicating considerable dependence on intermediaries for disposal of produce. Marketing cost increased with the increase in the number of intermediaries. Channel-I recorded the lowest marketing cost of ₹258.24 per quintal, whereas Channel-III recorded the highest marketing cost, mainly due to the involvement of commission agents, wholesalers and retailers. Channel-I recorded the lowest price spread of ₹258.24 per quintal and the highest producer's share in the consumer's rupee (92.78 per cent). In contrast, Channel-III recorded the highest price spread of ₹1,891.72 per quintal and a lower producer's share of 63.38 per cent.

Marketing efficiency was highest in Channel-I (13.86), followed by Channel-II (3.19) and Channel-III (2.73). Thus, direct marketing was found to be the most efficient and remunerative channel, as it enabled producers to retain a larger share of the consumer price. Overall, the study concluded that strengthening direct and collective marketing systems, improving market information, transportation and post-harvest facilities, and reducing unnecessary intermediaries would help to lower marketing costs and price spread and improve the income of marigold growers.

Suggestions

Direct marketing should be promoted among marigold growers, as Channel-I was found to be the most efficient and remunerative channel with the lowest marketing cost and price spread and the highest producer's share and marketing efficiency.

Farmer Producer Organizations (FPOs) and collective marketing should be strengthened to improve farmers' bargaining power, reduce dependence on intermediaries and lower transportation and marketing costs.

Timely market information and better market linkages should be provided through digital platforms, extension agencies and organized markets to help farmers obtain prevailing price information and select remunerative markets.

Post-harvest handling, packaging, storage and transportation facilities should be improved to minimize losses in highly perishable marigold flowers and improve the quality and price realization of the produce.

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10. How to cite this article: Jangam AS, Shinde VA, Deshmukh BJ, Satpute SV, Jangam TS. Marketing channels and price spread of marigold in Kolhapur district of Maharashtra: An economic analysis. International Journal of Biology Sciences. 2026;8(9):105-109. doi: https://www.doi.org/10.33545/2664992