Background

Marketing system refers to the channel along which commodity passes through a sequence of stages or events, and it varies with commodity and other factors such as distance, infrastructure and producer’s awareness. Price signal transmission and physical transmission of the commodities are major functions of marketing; carrying out such by a market depends on number and size of participants, information system and the physical infrastructure. Marketing links the production and consumption sectors, marketing can contribute to all four objectives through the efficiency with which it communicates signals of scarcity and abundance to decisionmakers because it is the source of productive activities involving many jobs, marketing can contribute directly to economic growth, income distribution, and nutritional objectives. While price is the most flexible, marketing channel plays a major as distribution channel through which firms reach their end consumer is the least flexible and perhaps the costliest to change in the short run.

Nepalese agriculture has been confronting low return depriving farmers of their improvement in livelihood. ‘vegetable’ has been identified as one of the leading sub-sectors to harness advantages of agroecological diversities and has undertaken vegetable promotion strategy especially in the small holders visualizing comparative advantages of vegetable production and marketing in economic growth and development. Over the time and commensurate with the national vision, many state agencies including those supported by donors are, in their various capacities, engaged in vegetable production and marketing promotion in the country. However, the goal is not achievable unless a fairly operating marketing system and a market-oriented production system are instituted.

Local vegetable production has good opportunities to fulfill quality aspects/requirements of transparency and traceability in the supply chain due to the possibilities for direct interaction between producers and consumers. This necessitates analysis of specific logistics systems in order to identify successful approaches for improving the local food supply chain.  Real problems in the system can only be described, when the economy of production mechanism and marketing system for major vegetable products operating in a particular area is evaluated. Local food distribution systems to determine how cooperation, optimization and integration in the supply chain can make the distribution systems of local and small-scale food producers more efficient and aid to economic development.

The main role of communication is providing information, persuasion, motivation, reminding and influencing the behavior of the people. Communication plays an important role in changing the knowledge, attitude and behavior of the people. The process allows the public to know or understand a brand. Effective communication involves targeting audiences who appreciate the program and get actively involved in it.

Problems / Issues

Studies on vegetable production and marketing to substantiate economic relation between farmers and traders are limited in Nepal. Farmers’ poor access to fair prices and marketing support services and policy weakness is observed as major problems. Due to the Marketing Channel of vegetables at various levels, local farmers are not sharing fairly on the consumers’ prices. The prices available to the farmers could be genuine, when considered low storability, fresh consumption-pattern and high-volume and sophisticated transportation need of vegetable produces that render vegetable marketing a complex business incurring higher costs and risks at traders’ level as well.

Regarding agriculture marketing in Nepal, a general remark had been such that the traders usually tried transferring all sort of price risks to farmers and offered low prices to them by creating monopolistic situation. However, such things are not studied in view of vegetable production and marketing in Nepal. Different aspects of market-oriented production and market operation for vegetable crops need to be identified precisely to improve smallholder farm economy. To analyze vegetable production and marketing system with major focus on cost-benefit and mechanisms of commodity production and transfer, where farmers are, with a fetch of good income from vegetable production, reported improving socio-economic condition in the recent years.

The cost of vegetables becomes higher when they are imported through various marketing channels. The demand of vegetables in Sundarbazar is high. They are being imported from other place rather than the production in locality itself resulting in the high cost of vegetable due to marketing channels. The vegetables are imported through various marketing channel via Chitwan which results in the increased cost price as well as decrease in the quality of the goods. The price will be quite lower along with freshly availability of the vegetables in the market if the vegetables are cultivated within Sundarbazar enhancing the economic benefit to both the farmers and consumers of the town.

METHODOLOGY

Various methodologies were used for the detail study of the topic.

Desk Study

All the relevant data and information available from various source have been re-viewed to carry out the study. Different text books, articles, journals and internet was used to gain more knowledge.

Site Selection

Marketing channel of vegetable in Sundarbazar was selected for the analysis of economic issues related to Agriculture. Sundarbazar is situated at Sundarbazar Municipality in Lamjung District in the Gandaki State of northern-central Nepal with sub-tropical climate. It lies in Province No.4 in western hills of Nepal extended from 28.1448° N and 84.4120° E.

Data Collection

For the collection of information various methods were used.

Primary Source

In this method field visit was done. We observed the marketing channel of Sundarbazar with the field visit to vegetable market of Sundarbazar. Questionnaire was prepared with the interview being conducted with key informant with the people being involved in the marketing channel of Sundarbazar. Group discussion was done to prepare template, flex, and video as a communication material for the awareness of the people about the opportunity for the local people in the vegetable market.

Secondary Source

We took data from CBS, Sundarbazar municipality, vegetable market and other research articles.

Communication Material Preparation

For the process of creating the communications tools for the Receiver 1 (People visiting the Lamjung Campus) and Receiver 2 (Other People). Field Visit was conducted within the vegetable market of the Sundarbazar. The people involved the marketing channel of vegetables in the markets were asked about the marketing channels of vegetables in Sundarbazar regarding cost of vegetables at the local market and the market from where it is being imported. The video was also recorded regarding their view about the marketing channels of vegetables.

A flex is prepared which shows the price of vegetables when they are brought through different marketing channels and price when it is being locally produced with the slogan to develop our place, we need to take initiative from ourselves.  Flex has been placed which is directly visible when people enter inside Lamjung Campus. A video has been prepared awaring people where the interview of the local which has been uploaded on the YouTube.

Result

The fluctuation in price occurs due to the marketing channel. The costs of storage, transportation, and processing the marketing transformations are an integral component of food price formation. Vegetables in Sundarbazar is imported from Chitwan via Dumre. The vegetable market of Sundarbazar was found to be totally depended on the import with increased price of the commodity for the consumer and degradation of the quality of products. The percentage fluctuation is very high ranging from 25 % to 100 % in different vegetables. The vegetables will be available at lower price if the vegetables are produced locally. The locally produced vegetable will be freshly available as compared to the imported vegetables from another place.

Conclusion

Vegetable is a potential source of export earnings, rural employment and economic growth. Improving production and marketing efficiencies of local products is only way to sustain and enhance the economic growth of place. The production of vegetables within the local area rather than importing it through various market channels as it makes the cost of vegetables lower and fresh vegetables will be available in the market. However, Sundarbazar marketing channel of vegetables is not able to harness available market for vegetables, and different factors at production and marketing levels hindering vegetable business at the local level.

Communication Materials prepared demonstrates analytical and structural econometric advantage on pricing in a channel. It awares people about the importance of local production of the vegetable for the economic benefit and healthy foods but people should be equally provided with the resources and trainings for the production of the vegetables locally.

References:

ACEPP. 2068. Import and Export details of Agriculture Commodities (FY 2066/67). Government of Nepal, Ministry of Agriculture and Co-operatives, Department of Agriculture, Agri-business Promotion and Market Development Directorate, Agri-commodity Export Promotion Program, Nepal (in Nepali)

Jeuland, A. P., S. M. Shugan. 1983. Managing channel profits. Marketing Science 2 239-272. Kadiyali, V., P. Chintagunta, N. Vilcassim. 2000. Manufacturer-retailer interactions and implications for channel power: an empirical analysis of pricing in a local market. Management Science 19 127-148.

Singh, M.K., 2008. Economics of production and marketing of vegetables in Madhya Pradesh, India. Available at: [http://www.ivcs.org.uk/IJRS/Oct2005/EconomicsarticleManojKumarSingh.pdf]