Tuesday, 27 January 2026

The Economics of Soybean Marketing: A Regional Study of Market Margins and Efficiency in Belagavi District of Karnataka, India | Chapter 1 | New Advances in Business, Management and Economics Vol. 12

 

Soybean (Glycine max L.) is an important crop worldwide, valued for its utility in edible oil production, plant-based protein supply and diverse industrial uses. The present study examines the marketing system of raw soybeans in Belagavi district of Karnataka, focusing on the structure of marketing channels, associated costs, margins and overall efficiency. Primary data were collected from key stakeholders, including farmers, processors, wholesalers and commission agents-cum-traders. Bailhongal and Hukkeri taluks were purposively selected because of their significant role in soybean cultivation and trade. A multistage sampling procedure was used to select farmers, while market intermediaries were chosen through random sampling. Marketing efficiency index was assessed using Acharya’s method, and farmers’ reasons for preferring direct sales were analysed with the help of Garrett’s ranking technique. The value chain assessment revealed two major channels, viz., Channel I, where farmers sell directly to processors and Channel II, where produce moves through intermediaries such as wholesalers and commission agents. Most farmers showed a preference for direct sales to processors due to the potential for higher price realisation. The study found that producers and wholesalers bear a substantial share of marketing costs, mainly on account of transportation, statutory deductions and other miscellaneous expenses. Understanding the composition of these costs is crucial for identifying bottlenecks, minimising wastage and improving supply chain performance. Comparative analysis indicated that Channel I exhibited greater marketing efficiency than Channel II, and among the two taluks, Bailhongal performed more efficiently than Hukkeri. To improve overall market functioning, the study highlights the importance of organising farmers into collectives such as Farmer Interest Groups (FIGs), Commodity Interest Groups (CIGs) or Farmer Producer Organizations (FPOs). These collective platforms can enhance farmers’ bargaining strength, ensure better price negotiation and contribute to more efficient and equitable soybean marketing.

 

 

Author(s) Details

Darshan C
Department of Agribusiness Management, College of Agriculture, University of Agricultural Sciences, Dharwad, India.

 

Priyanka P Kodabal
Department of Agribusiness Management, College of Agriculture, University of Agricultural Sciences, Dharwad, India.

 

Please see the book here :- https://doi.org/10.9734/bpi/nabme/v12/6707

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