A Complete Analysis of Durum Wheat Value Chain in the Central Zone of India

Abstract

The study analysed wheat (Triticum durum) value chains in Madhya Pradesh, situated in the Central Zone of India. Conducted in 2023, it employed multistage random sampling to obtain data from 100 respondents, comprising 60 farmers and 40 stakeholders engaged in wheat value chains. The assessment covered the entire pathway from farm to consumer, focusing on cost of cultivation, gross returns, marketing margins, value addition, and marketing efficiency. The results indicated that the average cost of cultivation was ₹35,665 per acre, while the average gross return amounted to ₹43,802 per acre. Small farmers reported the highest cost as well as gross returns. The mean return on investment (ROI) for wheat cultivation was estimated at 0.35. Three distinct value chains were identified in the study area. Among them, the chain where farmers sold directly to millers, bypassing local traders and brokers, was the most efficient (0.849). This chain also ensured the highest price realization for farmers (₹2,350/q), compared with ₹1,870/q and ₹2,060/q in the first and second chains, respectively, which involved more intermediaries. The findings highlight the efficiency gains from reducing intermediaries and provide empirical evidence to support future research on value chain optimization in other crops.