Year: 2017 | Month: December | Volume 62 | Issue 4

An Economic Analysis of Cut Flower Marketing in Tamil Nadu



An economic analysis of cut flower marketing was taken up in Hosur block of Krishnagiri district of Tamil Nadu. Four channels were identified for the marketing of the cut flowers in the study region namely two commission agent channels, one a wholesaler channel and another a retailer channel. The price spread analysis by the sum of average gross margin method revealed that marketing channel IV namely the retailer channel was the efficient marketing channel because of better pricing mechanism, lesser price spread and better regulation that is prevalent in this channel. Marketing efficiency was estimated by Shepherd method and Acharya and Agarwal method. In this analysis also, marketing Channel- IV was found to be the most efficient marketing channel for all the three flower crops. Further, SWOC analysis of cut flower production was carried out and the strength in cut flower production is the production of flowers throughout the year and the spread and prevalence of new high tech technologies. The weakness included poor air freight capacity and the lack of airport infrastructure of the region. Lot of opportunities for cut flower production exist with the development of Agri-export zone in the region. The challenges daunting the cut flower production are labour problems and price fluctuation of cut flowers. Marketing constraints were studied by Garrett ranking technique. Higher price fluctuation was an important marketing constraint and the lack of continuous supply of cut flowers was the most important problem of intermediaries. The policy advocacy to overcome higher price fluctuation is by adopting the Action market forecast of Bengaluru and by following forward trading.

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Economic Affairs, Quarterly Journal of Economics| In Association with AESSRA

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