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 Marketing cost: Rs.156 per quintal (including loading, unloading, transport, packaging)

Total purchase price per quintal: Rs. 12,541 At time of selling,

Retailer makes 10% margin on wholesaler price. Selling price,

Total selling price: Rs.13,795 Profit: Rs. 1254

35 CHANNEL: 2

1. Farmer

 Cost of production for one quintal of Cumin: Rs.6300

 Sales price at APMC market per quintal: Rs.9000

At the time of selling

 Marketing cost incurred per quintal: Rs.70 ( loading, unloading, weighing, transporting, grading, and sorting)

 Effective selling price per quintal: 9000 – 70 = Rs.8930

Profit: 8930 – 6300 = : Rs.2630 Margin to cost of production: 68%

2. Commission agent

 Commission per Rs 100: Rs 2

 Commission per quintal Rs 90

 Profit: Rs.90

3. Trader

Trader takes Rs.5 dalali from miller and this is the profit for trader per quintal. Margin to cost of procurement:

4. Miller

At the time of procuring:

 Purchase price per quintal: Rs.9000

 Marketing cost incurred per quintal: Rs.641 (market fee, loading, unloading, transporting, bill commission, packaging of Cumin, weighing, processing charge)

 Purchase price: 9000 + 641 = Rs.9641

 Selling price per quintal: 12000

At the time of selling,

Selling at 2% discount per quintal to wholesaler and including packaging charge, brokerage to broker.

Total selling price: Rs.11760 Profit: Rs.2119

36 5. Broker

Trader takes Rs.10 brokerage from miller and wholesaler and this is the profit for broker per quintal.

6. Wholesaler

At the time of procuring,

 Marketing cost: Rs.382

 Total purchase price per quintal: Rs.12,142

At the time of selling,

Wholesaler sells Cumin at 2% margin on mill price per quintal Total selling price per quintal: Rs. 12,385

Profit per quintal: 12,385 - 12,142 = Rs. 243

7. Retailer Purchasing time,

 Marketing cost: Rs.156 per quintal (including loading, unloading, transport, packaging)

Total purchase price per quintal: Rs 12,541 At time of selling,

Retailer makes 10% margin on wholesaler price. Selling price,

Total selling price: Rs.13,795 Profit: Rs. 1254

37 CHANNEL 3:

1. Farmer

 Cost of production for one quintal of Cumin: Rs.6300

 Sales price at APMC market per quintal: Rs.9000

At the time of selling

 Marketing cost incurred per quintal: Rs.70 ( loading, unloading, weighing, transporting, grading, and sorting)

 Effective selling price per quintal: 9000 – 70 = Rs.8930

Profit: 8930 - 6300 : Rs.2630

Margin to cost of production: 42%

2. Commission agent

 Commission per Rs 100: Rs 2

 Commission per quintal Rs 90

 Profit: Rs.90

3. Trader

Trader takes Rs.5 dalali from miller and this is the profit for trader per quintal.

Margin to cost of procurement:

4. miller

At the time of procuring:

 Purchase price per quintal: Rs.9000

 Marketing cost incurred per quintal: Rs.641 (market fee, loading, unloading, transporting, bill commission, packaging of raw Cumin , processing charge)

38 Selling price per quintal: 12000

At the time of selling,

Selling at 2% discount per quintal to wholesaler and including packaging charge,

brokerage to broker. Total selling price: Rs.11760 Profit: Rs. 11760 – 9641 = 2119 Margin to cost of procurement:

5. Broker

Trader takes Rs.10 brokerage from miller and wholesaler and this is the profit for broker per quintal.

Margin to cost of procurement: 6. Wholesaler

At the time of procuring,

 Marketing cost: Rs. 382 . (Including loading, unloading, brokerage, octroi charges.)

Total purchase price per quintal: Rs.12142 At the time of selling,

Wholesaler sells cumin at 2% margin on mill price per quintal Total selling price per quintal: Rs. 12,385

Profit per quintal: 243

7. Consumer

39 Table: 4.12 Marketing margins to cost of production and farmer share in consumer rupee as base price of Green gram as Rs.6000 per

quintal

Actors Cost of production/procurement Marketing cost Purchase price Selling price Profit Channel C 1 C 2 C3 C 1 C 2 C3 C 1 C 2 C3 C 1 C 2 C3 C 1 C 2 C3 Farmer 3225 3225 3225 70 70 70 5930 5930 5930 2705 2705 2705 Commission agent 60 60 60 Trader 5 5 Dal miller 6000 6000 6000 485 490 490 6485 6490 6490 7546 7546 7546 1061 1056 1056 Broker 10 10 10 Wholesaler 7546 7546 7546 128 128 128 7674 7674 7674 7827 7827 7827 153 153 153 Retailer 7827 7827 46 46 7873 7873 8267 8267 393 393 Consumer 7827

40 4.6 Calculations for different channels:

All the calculations for all channels are base on following market price of Green gram per quintal. Calculations shown below are for one quintal of Green gram.

Price per quintal of Green gram: Rs.6000.

This study comprises study of all APMC markets in state of Gujarat so that marketing cost is same at each stage for different channel.

CHANNEL 1: 5. Farmer

 Cost of production for one quintal of Green gram: Rs.3225

 Sales price at APMC market per quintal: Rs.6000

At the time of selling

 Marketing cost incurred per quintal: Rs.70 ( loading, unloading, weighing, transporting, grading, and sorting)

 Effective selling price per quintal: 6000 – 70 = Rs.5930

 Profit: 2705

 Margin to cost of production: 84%

6. Commission agent

 Commission per Rs 100 : Rs 2

 Total commission per quintal Rs 60

 Profit: Rs.60

 Margin to cost of procurement: 2.5%

7. Miller

At the time of procuring:

 Purchase price per quintal: Rs.6000

 Marketing cost incurred per quintal: Rs.485 (market fee, loading, unloading, transporting, bill commission, packaging of raw Green gram, weighing, processing charge)

 Purchase price: 6485

41 At the time of selling,

Selling at 2% discount per quintal to wholesaler and including packaging charge, brokerage to broker.

Total selling price: Rs 7546 Profit: Rs.1061

Margin to cost of procurement: 8. Wholesaler

At the time of procuring,

 Marketing cost: Rs.128

Total purchase price per quintal: Rs.7674 At the time of selling,

Wholesaler sells at 2% margin on mill price per quintal Total selling price per quintal: Rs. 7827

Profit per quintal: 153

9. Retailer Purchasing time,

 Marketing cost: Rs.46 per quintal (including loading, unloading, transport, packaging)

Total purchase price per quintal: Rs.7873

At time of selling,

Retailer makes 5% margin on wholesaler price. Total selling price: Rs.8267

42 CHANNEL: 2

8. Farmer

 Cost of production for one quintal of Green gram: Rs.3225

 Sales price at APMC market per quintal: Rs.6000

At the time of selling

 Marketing cost incurred per quintal: Rs.70 (commission, loading, unloading, weighing, transporting, grading, and sorting)

 Effective selling price per quintal: 6000 – 70 = Rs.5930

Profit: 2705

Margin to cost of production: 84% 9. Commission agent

 Commission per Rs 100 : Rs 2

 Commission per quintal Rs 60

 Profit: Rs.60

10. Trader

Trader takes Rs.5 dalali from miller and this is the profit for trader per quintal. Margin to cost of procurement:

11. miller

At the time of procuring:

 Purchase price per quintal: Rs.6000

 Marketing cost incurred per quintal: Rs.490 (market fee, loading, unloading, transporting, bill commission, packaging of crop, weighing, processing charge)

 Purchase price: 6485

 Selling price per quintal: 7546

 At the time of selling,

Selling at 2% discount per quintal to wholesaler and including packaging charge, brokerage to broker.

Total selling price: Rs.7546 Profit: Rs.1056

43 12. Broker

Trader takes Rs.10 brokerage from miller and wholesaler and this is the profit for broker per quintal.

13. Wholesaler

At the time of procuring,

 Marketing cost: Rs.128 (Including loading, unloading, brokerage, octroi charges.)

Total purchase price per quintal: Rs.

At the time of selling,

Wholesaler sells dal at 2% margin on mill price per quintal Total selling price per quintal: Rs. 7827

Profit per quintal: 153

14. Retailer Purchasing time,

 Marketing cost: Rs.46 per quintal (including loading, unloading, transport, packaging)

Total purchase price per quintal: Rs.7873 At time of selling,

Retailer makes 5% margin on wholesaler price. Total selling price: Rs.8267

Profit: Rs. 153

CHANNEL 3:

8. Farmer

 Cost of production for one quintal of Green Gram: Rs.3225

44 At the time of selling

 Marketing cost incurred per quintal: Rs.70 (commission, loading, unloading, weighing, transporting, grading, and sorting)

 Effective selling price per quintal: 6000 - 70 : Rs.5930

Profit: 2705

Margin to cost of production: 84%

9. Commission agent

 Commission per Rs 100: Rs 2

 Commission per quintal Rs 60

 Profit: Rs.60

10. Trader

Trader takes Rs.5 dalali from miller and this is the profit for trader per quintal.

11. miller

At the time of procuring:

 Purchase price per quintal: Rs.6000

 Marketing cost incurred per quintal: Rs.490 (market fee, loading, unloading, transporting, bill commission, packaging of crop, weighing, processing charge)

 Purchase price: 6490

Selling price per quintal: 7700 At the time of selling,

Selling at 2% discount per quintal to wholesaler and including packaging charge,

brokerage to broker. Total selling price: Rs.7546 Profit: Rs.1056

45 12. Broker

Trader takes Rs.10 brokerage from miller and wholesaler and this is the profit for broker per quintal.

13. Wholesaler

At the time of procuring,

 Marketing cost: Rs. 128 . (Including loading, unloading, brokerage, octroi charges.)

Total purchase price per quintal: Rs. 7546 At the time of selling,

Wholesaler sells at 2% margin on mill price per quintal Total selling price per quintal: Rs. 7827

Profit per quintal: 153

14. Consumer

46 CHAPTER 5

In document CONSTRUCCIÓN DE LA RED INTERAMERICANA DE INFORMACIÓN SOBRE BIODIVERSIDAD (IABIN) PLAN DE IMPLEMENTACIÓN DEL PROYECTO (PIP) (página 67-71)