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Marketing Channel of Vegetables in Nepal

by Kushal Naharki | 05-02-2021 21:48


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.

References: 
ACEPP. 2010. 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]