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Agricultural Marketing

Marketing of Banana

Banana is said to be a common man's fruit, because there is large area under banana in India, its per hectare yield is also the highest (30 - 35 MT/ha) of all the fruits. Therefore its production is large and the prices are within the reach of common people. Total area under banana is 3.70 lakh ha, next to Mango. Among the States, Maharashtra contributes the maximum area of about 90,000 ha. In Maharashtra, area under banana is concentrated in Jalgaon district with nearly 60% area in that district.

Other districts growing banana are Parbhani, Nanded and Thane. Banana fruits from Jalgaon area are marketed in most parts of India, particularly in the north. In Tamil Nadu, banana is grown in Cauvery delta area.

Banana is a very perishable fruit and hence its marketing faces many problems such as chain of middlemen, transport, storage, etc. In local or short distance marketing number of intermediaries is small (one or two) but in long distance marketing commission agents and wholesalers are involved in addition to co-operative society.

Few findings of surveys on marketing of banana are presented here.

Marketing of Banana:

Jalgaon (Maharashtra):

In the marketing of banana in Jalgaon district three channels were identified.

Channel I

Producer - co-operative fruit sale society - commission agent - wholesaler - retailer – consumer

Channel II

Producer - Group sale agency commission agent - wholesaler - retailer – consumer

Channel III

Producer – Private agency - commission agent - wholesaler - Retailer – consumer.

Marketing costs, margins and price spread







Marketing costs




Marketing margins




Producer's share




All these indicators indicate comparatively greater economic as well as operational efficiency of the marketing mechanism of channel I i.e. Co-operative Fruit Sale Society over remaining ones. However, it is suggested that the producer's share in consumer's rupee in Channel I can further be increased if the co-operative Fruit Sale Society directly deals with the markets in terminal markets rather than selling the produce to the commission agent.

Jalgaon & Sangli: (Maharashtra):

The major proportion of produce was marketed through two marketing channels

I Producer - co-op. Society - retailer - consumer

II Producer - wholesaler - retailer - consumer

The producer's share was 34.53% and 31.05% for member and non-member producer's respectively. The members of producer's co-operative association could therefore derive relatively higher profit margins.

Parbhani (Maharashtra)

Channel I

Producer - co-op. Society - wholesaler

Retailer - consumer society 8%

Comm. To wholesaler 5%

Shares of expenditure on

i. Cultivation 65.6%

ii. Transportation 19.30%

iii. Commission 15.10%  100.00

Nanded (Maharashtra)

  1. Producer - wholesaler - Retailer - cons
  2. Producer - co-operative society - commission agent -cum-wholesaler-
  3. Retailer - consumer

Cost of marketing through

i. Co-op. Society Rs.58.37%

ii. Private 61.59

Producer's share through

i. Co-op. 51.65%

ii. Private 48.37%

Cauvery Delta (Tamilnadu)

The practice of opting pre-harvest contractors at the time of 50per cent maturity of the crop is commonly followed by majority ((88%) of the growers. The prime reason stated by the farmers was that the pre-harvest contractors give advance payments before harvest of the bananas to meet their immediate needs for production, consumption and social activities. Other reasons were

  1. High fluctuations in prices (400%)
  2. High winds during monsoon causing damage to the plants.
  3. Absence of institutional credit.
  4. Absence of crop insurance
  5. Small production and uneconomic quantities available for marketing
  6. Long association with contractors.
  7. Price discrimination in the markets.
  8. High marketing costs.


Following constraints were observed

  1. Non-institutional agencies and undesirable market practices in the markets.
  2. Deduction of 2 bunches for every 100 bunches as Profit bunches.
  3. Combining two small bunches as one bunch during counting for price fixing.
  4. Non-harvest of small size bunches.
  5. Delay in payment of balance amount after harvest
  6. Violation of contracts i.e. abandoning the harvest if there is slump in prices.
  7. Non-availability of institutional agency for banana which is highly perishable.
  8. Non-availability of any viable storage preservation methods.
  9. Non-existing institutional marketing agency like regulated market, or producer's association.          


  1. Setting up banana based agro-processing industry.
  2. Marketing banana through regulated markets.
  3. Bringing co-operative marketing as new channel in the existing channels which will increase producer's share in the consumer's rupee

Marketing Harichhal Banana in Gorakhpur (U.P)

  1. Produce - Retailer - consumer channel for the sale of Harichhal banana was more profitable compared to other systems of sale.
  2. For increasing marketing efficiency, grower should develop co-operative system of transport.
  3. Storage facility should be developed on co-operative lines, so that the farmers will be protected from stress sale.
  4. Weights and measures should be standardized.
  5. Market information should be communicated to the growers regarding prices of banana.