Marketing Channel and Margin Analysis

The study was aimed at achieving the specific objectives as identification of the different market channels, analyzing marketing margins and investigation of the role of different marketing actors.As per the findings of this study, a total of 7,513qts of pepper was transacted during the year 2008/09 along the marketing chains. Based on direction of flow of the product, ten marketing channels were identified. The result showed that the total purchase of pepper was in the hands of few individuals depicting the existence of oligopoly market structure of different degrees in different markets. Marketing margins calculated for different marketing actors along the marketing chains were found to be very wide indicating the presence of inefficient markets. In order to settle price fluctuations and to strengthen the bargaining power of producers, there should be a well stated commodity standard that is set at the national level. Facilitating training about pepper trading can help producers and other interested bodies involve in pepper trading. This can in turn improve the market competitiveness, structure and efficiency.