Marketing Dynamics of Tomato Production in Karnataka: An Empirical Study of India’s Poor Man’s Orange

Abstract

Tomato (Solanum lycopersicum), a key horticultural crop globally and in India, plays a vital role in the country’s agricultural economy and food systems. Karnataka, particularly Kolar and Belagavi districts, is one of the major tomato-producing regions. This study investigates the marketing dynamics of tomato in these districts by analyzing the marketing channels, costs and efficiency. A multistage purposive sampling method was employed to select farmers and intermediaries. Primary data were collected through structured schedules and analytical tools such as Shepard’s marketing efficiency index and descriptive statistics were applied. The study identified three main marketing channels: Channel I (Producer → Consumer), Channel II (Producer → Wholesaler-cum-Commission Agent → Retailer → Consumer) and Channel III (Producer → Village Trader → Wholesaler-cum-Commission Agent → Retailer → Consumer). Results showed that, although Channel I was the least used due to its logistical limitations, it yields the highest producer share in the consumer’s rupee (77.90% in Kolar and 78.56% in Belagavi districts) and the highest marketing efficiency (4.52 and 4.66, respectively). Channel II was the most commonly used in both districts and exhibited moderate efficiency (2.17 in Kolar and 2.30 in Belagavi districts). Channel III had the lowest producer share and marketing efficiency due to increased intermediary involvement. The analysis revealed that, transportation constituted the highest marketing cost component and presence of intermediaries significantly reduced the farmers' profit margins. The findings underscore the benefits of direct-to-consumer marketing for improving profitability and marketing efficiency. However, to make this approach viable at scale, there is a need for better infrastructure, such as cold storage and logistics and institutional support. The study recommends encouraging farmers to form clusters or producer organizations to collectively market produce and reduce dependency on intermediaries.