Structure and Conduct of Paddy Seeds Market-A Study in Mandya District of Karnataka State

The present study was conducted in Mandya district, which is one of the major paddy producing belts of Karnataka state. The study analysed the structure and conduct of paddy seeds market in Mandya district. For the study, data was collected both from primary and secondary sources. Multi-stage random sampling method was adopted to draw 25 farmers each from two talukas of the district, resulting in a total sample size of 50 farmers. The paddy seeds market was found to be oligopolistic in nature. Among the various seed agencies/companies prevalent in the study area, Karnataka State Seeds Corporation Limited (KSSC) was the dominant player with an average market share of about 78 per cent for the reference period (2006-07 to 2013-14) followed by National Seeds Corporation (NSC) with around 10 per cent. The Theil's Entropy Index was found to be 0.09, indicating that the paddy seeds market was highly concentrated. The overall growth rate of sales of paddy seeds by all the seed agencies (Government as well as private) operating in Mandya district was found to be negative (-0.95 %), indicating that the paddy seeds market was saturated. For majority (74 %) of the farmers, good quality of seeds was the most important factor which influenced their loyalty towards a particular brand.