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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