Market Structure, Intermediary Margins, and Farmer’s Share in Henna Marketing in Rajasthan
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Author: Shivraj Kumawat and Sheela Kharkwal
Author Address: Research Scholar and Assistant Professor, Department of Agricultural Economics, Sri Karan Narendra College of Agriculture, Sri Karan Narendra Agriculture University, Jobner-Jaipur-303 329 (Rajasthan)
Keywords: Henna, intermediaries, marketing channels, price spread, producer's share.
JEL Codes: C81, Q12, Q13.
Abstract
Henna is a commercially important crop in Rajasthan, supporting livelihoods in arid regions, yet farmers often receive limited returns due to complex marketing chains and intermediary involvement. This study analysed marketing patterns in Pali district using data from 60 farmers and 20 intermediaries collected through structured interviews in 2022–23. Marketing costs, margins, and price spreads were evaluated across three channels: Farmer ? Processor ? Retailer ? Consumer; Farmer ? Mandi ? Processor ? Wholesaler ? Retailer ? Consumer; and Farmer ? Village Trader ? Mandi ? Processor ? Retailer ? Consumer. Results showed that processors bore the highest costs, retailers earned the largest margins, and farmers' share of the consumer price ranged from 44.95–51.68 per cent, highlighting the influence of intermediaries on profitability. Integrating Sojat Krishi Upaj Mandi with e-NAM could enable farmers to access buyers directly, potentially improving price realization and reducing intermediary-related costs.
Description
Indian J Econ Dev, 2025, 21(4), 685-693
https://doi.org/10.35716/IJED-25113