Marketable Surplus and Supply Chain Analysis of Wheat in the Mid Hills of Kangra Valley, Himachal Pradesh, India

Abstract— An attempt has been made in this research to identify the major supply chains in the mid-hills of Kangra valley involved in the wheat business and the different functionaries transferring the produce from producer to consumer, along with their marketing costs, margin, price spread, efficiency, and the producer’s share in the consumer’s rupee. The supply chains were identified on the basis of form, place, time, and possession utility. Three marketing channels were found. Channel II (producer → primary wholesaler → secondary wholesaler → retailer → consumer) was the most preferred, with 56.86 per cent of the total wheat traded through it. Price spread was highest in Channel III (producer → local trader/commission agent → flour miller → retailer → consumer) due to the highest marketing margin (19.84%). The producer’s share was highest in Channel I (97.73%) where cultivators sold directly to consumers, and lowest in Channel III (62.88%). Marketing efficiency was highest in Channel I (42.99%) as reduced intermediation lowered costs. The study concludes that a larger number of intermediaries increases marketing cost and margin, reduces the producer’s share, and makes the channel less efficient.