Marketing Channel for Banana

1. Marketing Channel for Banana Next End

2. Introduction • India continues to rank as the second largest producer of fruits in the world. • Banana is one of the important fruits in India and occupies about 4.24 lakh hectares (10.49 per cent in world share) with a production of about 121.05 lakhtonnes (17.44 per cent in world share) in 2005-06. • The main varieties of banana are Dwarf Cavendish, Rasthali, Robusta, Povan, Nendran, Karpuravalli and Sevvazhai. Export of Banana is less than 10 % of production • The major banana producing states are Maharashtra, Kerala, Tamil Nadu, Gujarat, Assam, Andhra Pradesh and Karnataka • Banana is exported to Middle East, Gulf, Russia, Ukraine and otherEuropean countries from India. Previous Next End

3. Previous Next End Marketing Practices of Banana Assembling Harvesting and assembling the produce for the market is done by • Growers • Pre-harvest contractors • Village merchants

4. Growers or Producers Banana growers in South India are mainly marginal farmers who do not find it profitable to harvest the crop at periodical intervals and transport to markets as the bunches usually do not attain harvestable maturity uniformly due to variation in sucker size and variation in fertlisation, irrigation. The grower's share in assembling of the produce will be only upto 10 per cent in India. Previous Next End

5. Previous Next End Pre-harvest contractors Pre-harvest contractors are the main assembling agents in the case of bananas. They conduct periodical visits to the banana garden of individual small holdings and enter into contract with these farmers by advancing money to purchase the bunches.

6. Previous Next End Village Merchant Village merchant accounts for about 10 per cent of the total produce assembled. These merchants operate in villages near about shandies. These merchants collect the produce and then have it sold at shandies.

7. Sorting Sorting of bunches/fingers into different grades and marketing are not practiced in India by the growers. Even at the assembling centres, disposal is as bunches and as such no sorting is resorted . At the retail level only, fruits are sorted according to different sizes. Previous Next End

8. Packing In India the bunches are marketed naked. There is no practice of using any special type of containers. The bunches are as such loaded or unloaded from the carts, lorries or rail wagons. When the produce is to be sent to far off places, through lorry, the individual bunches are packed with banana waste leaves which served as cushion in between the bunches and consequently the damage to the fingers during transit is reduced. There is no unit of packing as transport and sales are effected on the basis of number of bunches In the case of hill bananas, the bunches after harvest are split up into different hands possibly due to easiness of transport on mule or ponies. Hill bananas are, packed in gunny bags each having a capacity of 400 to 600 fruits. If the fruits are to be transported over a long distance, generally no packing is undertaken and the fruits are sent in loose form. Previous Next End

9. Previous Next End Transportation The harvested bananas from the gardens located in villages are usually transported as head loads, on ponies, as cart loads and as lorry loads, the transport for interstate trade are mainly effected through lorry services and railway wagons.

10. Various type of marketing channel marketing channel Local Sale Marketing Channel PRODUCER FRUIT VENDORS CONSUMER Distance Marketing Channels - Marketing Channel I WHOLE SALER RETAILER PRODUCER CONSUMER Previous Next End For banana commonly five types of marketing channels was identified based on the distance.

11. Marketing Channel II RETAILER PRODUCER Whole saler CONSUMER Marketing Channel II VILLAGE MERCHANT RETAILER PRODUCER CONSUMER Previous Next End

12. Contract Marketing - Contract Marketing Channel I PRE HARVEST CONTRACTER PRODUCER RETAILER CONSUMER Contract Marketing Channel II PRE HARVEST CONTRACTER COMMISION AGENT PRODUCER RETAILER CONSUMER Previous Next End

13. High Distance Marketing Channel PRODUCER COMMISION AGENT/ TRADER PRIMARY WHOLE SALER SECONDARY WHOLE SALER CONSUMER SECONDARY WHOLE SALER Modern Marketing Channel PROCUREMENT AGENCIES RIPENING / STORAGE RETAIL OUTLETS PRODUCER CONSUMER Next End Previous

14. Constraints in Banana Marketing High fluctuations in prices (400%) High winds during monsoon causing damage to the plants. Absence of institutional credit. Absence of crop insurance Small production and uneconomic quantities available for marketing Long association with contractors. Price discrimination in the markets. Non-institutional agencies and undesirable market practices in the markets. Deduction of 2 bunches for every 100 bunches as Profit bunches. Combining two small bunches as one bunch during counting for price fixing. Non-harvest of small size bunches. Delay in payment of balance amount after harvest Violation of contracts i.e. abandoning the harvest if there is slump in prices. Next End Previous

15. Let us Sum Up • Banana stands second next only to mango in area and production among fruit crops in India. • The major banana producing states are Maharashtra, Kerala, Tamil Nadu, Gujarat, Assam, Andhra Pradesh and Karnataka. • More than 40 per cent of production being in Southern States Marketing system for bananas is not well organized in India and hence, the produce suffers losses in quality and quantity before it reaches the consumers. There is no institutional channel for banana marketing. • Contract marketing is very common and contract between producers and pre harvest contractors at a fixed price and it reduce the price risk of farmers. • In high distance marketing more number of intermediaries involved in the marketing channel. Previous End