A study on marketing patterns, marketing cost, and price spread in marketing of organic and inorganic wheat

Abstract

This study analyzed the marketing patterns, costs, price spread, and efficiency of organic and inorganic wheat in Parbhani district, Maharashtra, using data from 120 farmers (60 organic, 60 inorganic). Three marketing channels were studied, revealing that the producer’s share in the consumer rupee was highest in Channel I (100 per cent) for both types and declined as intermediaries increased dropping to 91.93 per cent for organic and 91.77 per cent for inorganic wheat in Channel III. Marketing costs also rose with channel length, from Rs.33.89 to Rs.335.41 for organic and Rs.34.50 to Rs.330.79 for inorganic wheat. Inorganic wheat consistently faced higher marketing margins (Rs.54.99 vs. Rs.46.40) but showed slightly better marketing efficiency (5.56 per cent in Channel I) compared to organic wheat (5.26 per cent). Despite organic wheat having slightly higher producer shares, inorganic wheat benefited from stronger market linkages and lower certification burdens. Overall, direct marketing (Producer → Consumer) emerged as the most efficient and profitable channel for both organic and inorganic wheat producers.