Comparative analysis of net returns from domestic and export marketing of banana in Kadapa district of Andhra Pradesh

Banana farmers in Andhra Pradesh can sell their produce through the domestic market or through export arrangements and the return a farmer actually keeps depends on both the price received and the share of marketing cost he or she has to bear. The present study compared the returns obtained from the domestic and export marketing of banana in three mandals of Kadapa district, namely Pulivendula, Vemula and Lingala, using primary data from 120 farmers, 60 selling through the domestic channel and 60 through the export channel. Marketing cost and net return analysis was used to compare the channels and the weighted average mean (Likert scale) method was used to rank the factors that influenced the choice of the export market. In the domestic channel (Producer → Wholesaler), farmers received an average price of ₹16,175.00 per tonne and bore the entire marketing cost of ₹2,868.33 per tonne (17.73 per cent of the price), leaving a net return of ₹13,306.67 per tonne and a net price realization of 82.27 per cent. In the export channel (Producer → Exporter), farmers received ₹18,450.00 per tonne and bore no marketing cost, as grading, packaging, loading and transport costs of ₹4,725.00 per tonne were met by the exporting company, so the net return and net price realization were ₹18,450.00 per tonne and 100.00 per cent. The export channel thus gave ₹5,143.33 per tonne more to the farmer than the domestic channel. Timely payments (mean score 4.33), higher selling price (4.27) and better market access (4.10) were the most important reasons for choosing the export market. Reliable payment, remunerative prices and easier market access are therefore the key levers for drawing more farmers to export marketing, while lowering the handling cost borne by domestic-market farmers would improve their returns.