Price Spread of Agricultural Commodities
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Author:K. SRIRAMAN
p-ISSN:0024-9602, e-ISSN:2582-5321, Vol:53, Issue:aug-aug
DOI: https://doi.org/10.29321/MAJ.10.A03804
Abstract
The difference between the price paid by the consumer and
the price received by the producer of an agricultural commodity, is termed as
the Price Spread'. This price spread usually represents the cost of marketing
and includes charges incurred for handling, transport and assembling besides the
profits appropriated by the middlemen. Price spread studies enable ascertaining
the marketing costs, with a view to find out ways and means of lessening
the same for the benefit of both the growers and the consumers. Even in
advanced countries like United States of America and England, where the
farmers are more enlightened, the share of the consumer's price received by the
producer is only about 50 per cent at times. To encourage the agriculturists
to produce more, it is imperative that we should create conditions wherein
the producer may be able to get a larger share of the consumer's rupee.
Hence, these price spread studies are important and necessary, so that the
bottlenecks in marketing may be eschewed and a scientific assessment of the
need and efficiency of the various agencies employed in marketing may
be made.
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