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Institute of Agribusiness Management, S.V. Agriculture College, ANGRAU, Tirupati-517502.
In this rapidly developing economy, the agricultural marketing plays a pivotal role in providing the lucrative prices and
financial prosperity of the rural economy. FPOs provide access to markets by establishing the effective linkage between the producers and the retailers by streamlining the marketing channel. Kurnool district consists of actively performing FPOs under different departments and was purposively selected as there is a good spread of crops across the mandals and potential scope exists for setting up of multi commodity FPOs in the district. Multi staged stratified random sampling technique is adopted. The sample size constitutes of 100 FPO members and 50 Non FPO members in the study area. The current study was deliberated to analyse the prospects of the marketing channels adopted by the FPO and Non-FPO members. Marketing channel 1 is followed by FPO members while Channel II is followed by non FPO members. Price spread analysis of the current study reveals, the price spread in marketing channel I is relatively less compared to the channel II due the decreased length of the marketing channel of FPO farmers. Producer’s share in the consumers’ rupee received by the FPO farmers is more than the Non-FPO farmers which accounted to 88.96 per cent in the Channel I which was higher compared to Channel II accounted to 85.41 per cent in the cotton marketing, Like wise in the groundnut marketing, it accounted for 82.71 per cent for channel I and 77.86 per cent for channel II and in redgram marketing, it accounted for 78.40 per cent in the channel I and 70.19 per cent in the channel II in the study area. This difference is due to reduction in the transaction costs and the market margins in the channel I.
KEYWORDS: Market, marketing channels, Price spread, Producer share in consumer rupee.