Economic Analysis of Saffron Marketing Channels in District Pulwama of Jammu and Kashmir

Abstract

Saffron is one of the most valuable spice crops of Kashmir, and its marketing system plays a crucial role in determining farmers' income. This study examined the saffron marketing system in Pulwama district of Jammu and Kashmir with reference to existing marketing channels, growers’ preferences, price spread, producer’s share in the consumer’s rupee and marketing efficiency. The study was based on primary data collected from 150 saffron growers selected through stratified random sampling from five major saffron-growing villages: Pampore town, Chandhara, Khrew, Lethpora and Sharshali. Growers were classified into three landholding categories: below 4 kanals, 4–7 kanals and above 7 kanals. Five marketing channels were identified, namely Producer–Consumer, Producer–Commission agent–Retailer–Consumer, Producer–Retailer–Consumer, Producer–Commission agent–Firm–Retailer–Consumer and Producer–Spice Park (e-auction)–Consumer. Channel IV was the most preferred channel, accounting for 52.00 per cent of total saffron disposal, followed by Channel II (19.33 per cent) and Channel III (14.67 per cent). The direct Producer–Consumer channel recorded the highest producer’s share and marketing efficiency for both Laccha and Mongra saffron. The Spice Park e-auction channel also showed comparatively better marketing outcomes than several conventional intermediary-based channels. Overall, the results highlight clear differences in channel performance across marketing arrangements. The findings indicate that improving access to direct marketing, e-auction facilities, market information and producer-level capacity building may support better returns for saffron growers while retaining the existing structure of the saffron marketing system.