An inquest on strategic fit of market dynamics among value chains - Case of capsicum in Champawat district of Uttarakhand

Abstract

Value chain analysis for the strategic precision in market research has gained momentum during the last decades in all sectors like health, industry, education, agriculture etc. In agriculture it is very important to analyse the value chains to get substantial benefits to the farmers and esteemed satisfaction to the consumers as a single commodity value chain may show temporal and territorial variations in actors and activities involved in it. An exploratory value chain analysis of capsicum was undertaken in this study by considering the paucity of such work in this off season vegetable. Value chain mapping revealed the existence of two distinct value chains (C1: Producer-Consumer; C2: Producer-Wholesaler-Retailer- consumer) with different market functionalities for the capsicum. Marketing efficiency was found as 1.33 in C1 and 1.24 in C2 indicating the reduced efficiency of C2. Producer share in consumer price in terms of net margin was found 68.5 and 27.3%, respectively in C1 and C2. Value chain analysis revealed that maximum margin was obtained for the retailers (779Rs/q) among the different marketing agents.