Economics of High Value Agricultural Commodity Marketing in Garo Hills (Meghalaya)

The geographic and climatic conditions of Meghalaya support production of large number of different types of high value agricultural commodities. This can be converted into a high growth industry provided the producers are assured of better supply chains, marketing facilities, and reasonable prices for their produce. However, there are not enough studies available to understand the present situation in the state and plan accordingly. Thus this study tried to identify the supply chains of some the important high value agricultural commodities of Garo hills and estimate the marketed surplus, marketing cost, margins, price spread, and producer’s share in consumer rupee and marketing efficiency in these channels. The study specifically focused on small holders. The study identified four supply chains for pineapple, seven supply chains for areca nut and two supply chains for cashew nut in the study area. Based on the responses of producer farmers as well as different chain members, this study finds that the most of the small holders are in disadvantageous position with producers share in consumer rupee found to be as low as 25 percent in some channels. Most of the supply chains are very long with large number of middlemen who take away most of the consumer share. This situation is not very encouraging and can be considered as one of the prime factors affecting the traditional supply chains in hilly areas and poor contribution of agriculture towards economic growth. A proper supply chain strategy with the involvement of local institutions and improvement in rural and agri-infrastructure can be a possible solution.