Analyzing Price Behaviour and Constraints in Marketing of Small Onion in Tamil Nadu, India

Abstract

This study examines market trends and seasonal patterns in small onion Markets in Tamil Nadu, while also investigating challenges faced by various stakeholders in the onion supply chain. The various analyses have made use of secondary data that has been gathered from different sources. The NHRDF office in Coimbatore, NHB website and AGMARKNET website are the sources of the monthly data on wholesale market prices and arrivals of small onions f markets of Dindigul, Chennai, Coimbatore and Idukki from 2014 to 2023. Primary data also obtained to fulfill the one of the research objectives by surveying the sample of respondents. Two districts were selected purposefully: Perambalur and Trichy districts, based on the top onion producing districts in Tamil Nadu. The sample size constitutes 180 respondents (80 farmers, 40 retailers, 20 wholesalers and 40 consumers) were randomly interviewed with help of pre structured interview schedule. Trend analysis revealed increasing price trends across all markets, with Idukki experiencing the highest rate of increase. Seasonal index analysis indicated that prices in Tamil Nadu markets are influenced by arrivals, with lower prices during peak arrival periods., while Idukki market in Kerala prices less influenced by arrivals. Farmers struggle primarily with high labor costs (78%) and high cost of fertilizers pesticides and machineries (68.7%), while consumers face problems with price fluctuations (68.8%) and quality concerns (68.6%), retailers face problems with lack of storage facilities (76.27%) and absence of facilities for grading (64.85%), and wholesalers struggle with financial risks (79.2%). The study's findings will aid policymakers to focus on improving market infrastructure, regulating intermediaries, and supporting farmers in managing costs. Leveraging existing labor schemes could help alleviate workforce shortages. Furthermore, customers would gain from initiatives to maintain price stability and raise quality standards.