Marketing channels

Marketing of NTFPs : 

Marketing of NTFPs Main functions are :- Packaging & Processing Developing Marketing Channels Market Information Financing Enterprise development Marketing is linking the resource and product development to market preferences. In forestry, the role of marketing is to create effective linkages between resource managers, processors, and end users

Marketing Channels : 

Marketing Channels The chain of intermediaries through whom the various NTFP pass from producers to consumers constitute their marketing channels Three main players operate for marketing of NTFPs, they are Cooperatives Forest Department- nationalized products Private traders

Slide 3: 

The Marketing channels mainly exist in form of :- sale to a tribal agent, who sells to a consumer sale to an agent of a wholesaler direct sale to a primary retailer in a local market sale to a primary wholesaler, who sells to a secondary wholesaler sale to a secondary wholesaler The length of the channel varies from commodity to commodity Quantity to be moved form of consumer demand Degree of regional specialization in production

Marketing Efficiencydegree of market performance : 

Marketing Efficiencydegree of market performance It has three components Effectiveness with which a marketing services is performed Cost at which the services is performed Effect on production and consumption Assessment of efficiency can be done by way of :- Technical or Physical or Operational efficiency Pricing or allocative efficiency

Case StudyRaipur, Chattisgarh by Kanchan Chopra : 

Case StudyRaipur, Chattisgarh by Kanchan Chopra Study was conducted on three sets of representative products Nationalised products – tendu leaves, sal seeds Consumer goods- aonla tamarind, chironji Intermediate products- lac, mahul leaves NTFP collection is secondary source of livelihood for 98% of interviewed collectors NTFP collection contribute 40% of total household income Quantity traded of total collection – 35 to 100% The price received by the collector under different market channels is identified as an index of the efficiency of the corresponding channel.

Market channelsfor NTFPs : 

Market channelsfor NTFPs collector ? tribal agent ? primary wholesaler/retailer ? consumer collector ? tribal agent ? secondary wholesaler/ commission agent collector? primary wholesaler/retailer ? consumer collector ? primary wholesaler/ retailer ? secondary wholesaler/commission agent collector ? secondary wholesaler/commission agent nationalized purchased from forest department

Slide 7: 

collector ? tribal agent ? primary wholesaler/retailer ? consumer collector ? tribal agent ? secondary wholesaler/ commission agent collector? primary wholesaler/retailer ? consumer collector ? primary wholesaler/ retailer ? secondary wholesaler/commission agent collector ? secondary wholesaler/commission agent nationalized purchased from forest department

Slide 8: 

Collectors income as a percentage of the retail sale price. the collector’s price varies from 26% to as much as 85 % the retailer’s margin varies from about 8 to 25 % The chain of intermediaries between the retailer and the collector varies considerably from product to product and seems to be smaller in the case of higher value products. Also, In case of High value product collectors puts extra efforts to get market information hence higher price In case of Tendu leaves- Seclusion from market fluctuation But, margin is only 10% There is no integration of markets and free flow of information Govt. run institution increase overhead cost Best way to look after collector’s interest is to create conditions for efficiently functioning markets