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Table 1: Marketing cost incurred by the coir units (rupees per 100 kg).
Micro Units Small Units Average
Items of Cost
Channel II Channel II Channel III Channel II Channel III
60.13 56.84 62.32 58.49 62.32
Transport Cost
(49.74) (48.83) (56.48) (49.29) (56.47)
22.97 22.31 22.64
Commission - -
(19.00) (19.17) (19.08)
16.02 15.87 22.67 15.95 22.67
Rejection Loss
(13.25) (13.63) (20.54) (13.44) (20.54)
14.34 14.34 14.34 14.34 14.34
Loading and Unloading
(11.87) (12.32) (13.00) (12.08) (13.00)
4.28 3.90 7.87 4.09 7.87
Incidental Charges
(3.54) (3.35) (07.13) (3.45) (7.13)
2.05 2.05 2.05 2.05 2.05
Packing Cost
(1.70) (1.76) (1.86) (1.73) (1.86)
1.10 1.10 1.10 1.10 1.10
Weighing Charges
(0.90) (0.94) (0.99) (0.93) (1.00)
120.89 116.41 110.35 118.66 110.35
Total
(100.00) (100.00) (100.00) (100.00) (100.00)
Source: Primary Data,
Figures in brackets are Percentages to the total.
In which transport cost has a major share of 49.74 per 7.13 per cent. The remaining charges like pacing cost
cent, followed by commission charges (19 per cent), were 1.76 per cent in channel II and 1.86 per cent in
rejection loss (13.25 per cent) and loading and unloading channel III and weighing charges were 0.94 per cent in
(11.87 per cent). Incidental charges packing cost and channel II and 0.99 per cent in channel III. From the
weighing charges have shares of 3.54 per cent, 1.70 per analysis it is known that the channel III was the most
cent and 0.90 per cent respectively. economic channel with the least marketing costs among
all the channels, it is followed by channel II. The
The marketing cost incurred by the small units who marketing margin is the difference between the price
follow channel II was found to be Rs.116.41 per 100 kg paid by the ultimate consumer and the price received by
of coir fibre. Here also the transport cost has maximum the producer often in the market and such difference is
share of 48.83 per cent followed by commission charges the share due to middlemen. . (S.K Raha and M.A.
(19.17 per cent) and rejection loss (13.63 per cent). The Beten,1995).
shares of cost of loading and unloading and incidental
charges were found to be 12.32 per cent and 3.35 per Findings
cent respectively. The other two costs namely packing The channel which has least participation of
cost and weighing charges together have a share of 2.70 intermediaries has more marketing efficiency. The
per cent. District Industries Centre and the Coir Board have
vital role in the promotion of coir units, regarding
The marketing cost for small units who follow channel providing financial facilities and training programs
III was worked out to Rs. 110.35 per 100 kg coir fibre. to the coir manufacturers. Development of improved
The share of transport cost here also has a major share of variety of ratts and looms would help in improving
56.48 per cent. In channel III as the manufacturers skip the production of coir yarn spinning, coir mats, etc.
the commission agent and sell their coir fibre directly to It is inferred that the share of manufacturer’s price
market traders. The rejection loss has a share of 20.54 in industrial user price was higher in channel III,
per cent, followed by of loading and unloading with which was 54.90 per cent and this share was lower
13.00 per cent and incidental charges with 7.13 per cent. in channel I with 48.28 per cent.
The combined cost of packing and weighing worked out It is found that the marketing margin of the
to 2.85 per cent. wholesalers was higher in all the channels because
they spent more money on marketing cost, they can
Among the various marketing costs, transport cost of get more marketing margins than market traders and
small units has showed an increased share of 56.48 per native traders.
cent in channel III from 48.83 per cent in channel II. The A low level of price spread was witnessed in
rejection loss in channel II was 13.63 per cent, while it channel III as there were less marketing cost and
was 20.54 per cent in channel III. The share of loading marketing margin. As a result the manufacturer’s
and unloading cost has slightly increased from 12.32 per price was higher than in other channels.
cent in channel II to 13 per cent in channel III. The The analysis of marketing efficiency by using the
incidental charges was 3.35 per cent in channel II and it Shepherd’s method, Acharya and Agarwal’s method
was doubled in channel III and reached a percentage and Composite index method disclosed the fact that